The MTP is a roadmap for the economy, covering the years 2027-2029, that will promote large-scale industrial manufacturing, agricultural development, public procurement to spur domestic production and high-value exports via project-based funding.
Mr. Ahmet Yasar emphasised that the programme’s focus on strengthening economic resilience is particularly significant for the insurance sector. “We are talking about a very broad range of risks, from energy and water supply security to agricultural resilience, from strategic sectors to disaster risks. Insurance is one of the fundamental financial tools for economic and social resilience through the proactive management of risks, the sharing of economic losses, and the reduction of the burden on public finances”, he said.
Speaking about the President of the TSB mentioned that the February earthquakes in 2023 revealed the economic and financial dimensions of disaster risks. He pointed out that expenditures related to the earthquakes are expected to reach TRY 5.4 trillion or approximately USD 104 billion at 2026 rates for the period 2023-2026. An additional USD 10 billion in spending is expected in 2027, which would take the projected total expenditure to be around USD 116 billion.
“Therefore, we believe that in addition to providing relief for losses with public resources after a disaster, urban transformation policies that reduce risk before a disaster should be accelerated, and a larger portion of the remaining risk should be shared through insurance, reinsurance, and capital markets”, added Mr. Ahmet Yasar. “In the coming period, as a sector, we will need to focus more on shifting from nominal premium increases due to inflation to real growth, increasing the number of policies and policyholders, sustainable technical profitability and increasing insurance penetration”, he stressed.
Source: Middle East Insurance Review.
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