2026 is poised to be a year of significant growth for the insurance sector in terms of risk management, digital transformation, and sustainability, as the Insurance Association of Türkiye (TSB) President Mr. Ugur Gulen said, outlining his expectations for the new year, Middle East Insurance Review reports.

According to Mr Ugur Gulen, increased risk awareness, growing business structures and rapid technological advancements are boosting demand for fire, earthquake, health and business continuity coverage. In health insurance, the positive impact of regulations, along with the widespread adoption of data sharing and telehealth applications, is significantly increasing both the variety and accessibility of services.

The President of the Association added that the industry’s 2026 goals include sustainable and balanced growth, strong momentum in health and supplementary health insurance, wider reach in the individual segment and new product designs suitable for electric and autonomous vehicles. In traffic insurance, the balancing of claims costs due to slowing inflation and the mandatory coverage of motorbikes will contribute to market expansion. Participation insurance (takaful) will continue to grow with the impact of new regulations.

The main risks facing the sector are healthcare inflation, rising medical technology costs, an increase in catastrophic events, undervaluation issues, and low insurance coverage rates. At the same time, increased capacity, pricing stabilization, and more predictable risk transfers in reinsurance markets create a positive outlook for the sector.

“A strong growth target has also been set for premium production. The main goal of the sector is to increase premium production, which is expected to exceed TRY 1.2 trillion (USD 28 billion) in 2025, to nearly TRY 2.0 trillion in 2026”, Mr Ugur Gulen said.

On the financial reporting side, IFRS 17 is creating a significant transformation, enabling insurance companies to measure their liabilities much more accurately, and thus leading to a steadily increasing maturity level in financial reporting. “We expect that by 2026, the necessary legal regulations will be completed, and IFRS 17-based financial statements will replace IFRS 4-based statements, and the sector will begin reporting according to international quality standards”, Mr Ugur Gulen added.

“Our long-term vision for 2030 forms the main framework shaping the future of the industry. At the heart of this vision is a ‘more inclusive, more digital, more resilient’ insurance ecosystem”, he emphasized.