Year 2023, Turkey at the top with insurance

Fortunately, Turkey has used the opportunities very well in the last decade and excuse didn’t win in Turkey. Each step, required to be taken with great courage, has been taken, one by one. Industrialists, white collars, entrepreneurs, exporters, investors, companies and business men across all sectors have benefited from the stable policy environment and stability in Turkey and caught up with the stable growth. In contrast to the economic crisis in many countries in the world, the companies in Turkey has grown incredibly by 10 to 100 times. All the stigma, failures and loss of the past have been cleared one by one. The Treasury has paid, including principal and interest amound, USD 5 billion to victims of ?mar Bank and nearly USD 75 billion to the depositors of other banks which went bankrupt. Nearly USD 5 billion which was accumulated in Mandatory Savings Account (TTH) years ago has been paid to their owners. In early 2005, six zeros have been removed from Turkish Lira (TRY) and TRY started its honourable increase. The value of TRY against world currencies has increased. Public banks, which used to write-of huge losses a decade ago, improved, by announcing record rates of profit, that they are the mainstay of Turkish economy and the biggest scaffolding for a powerful economy. Turkey has achieved and experienced big successes in the last decade: The Gross Domestic Product (GDP) has increased by four times and increased to USD 800 billion from USD 200 billion. Income per capita has increased by three times and increased to USD 10.500 from USD 3.500. In the last decade, “Real growth” of Turkey has been realized as 5.3% on average annually. Turkey grew more than 100% in real terms. Public debt to gross national product ratio regressed to 40%. Foreign direct investment has reached to USD 150 billion. The debt to IMF has been paid off.

On the other hand, the technological development in Turkey has been unbelievable: The number of mobile phones reached 68 million. 3G subscribers reached to 45 million. Internet users reached to 50 million. It took the place near top in the world in Facebook with 32 million users. Internet delivery speed increased 10 times and rose from 160 Gigabit/sec to 2 Terabit/sec. The lowest broadband speed has risen up to 8 Megabit/sec in residential areas. Turkey has started to produce its own satellite, its own plane and car. In the last decade, the annual production of insurance sector grew five times and increased to USD 11 billion from USD 2 billion. Although the share of 1.5 % in the GDP of the insurance sector is very small, the total amount of risk guaranteed by the insurance sector is USD 24 trillion which is equivalent to 30 years of GDP. Insurance sector has made a very good start to 2015. Particularly, the public contribution and support in Pension System, Earthquake insurance and Comprehensive Car insurance were the success factors behind the growth in recent period.

Year 2023, the 7th Biggest Economy of the World;Turkey

How? By moving always further, upward and to the top, always growing. How? By never losing, never failing. How? By not suffering from crisis, disasters, big damages. How? Insurance. Insurance. Insurance. Yes, the mountain climbers, when climbing to the top, pound nails to the mountain in regular intervals and tie the rope at their waists to the hooks in the nails not to fall from where they are. When they face with an unfavourable situation, when their hands or feet slide, the nails keep the climbers in their place. Thus, they can always move forward without falling to the bottom in their way to the top. Just like the climbers, all the people in Turkey who aim the top in terms of economy can pound a nail with insurance and can continue climbing without falling ever.

The only way to climb to the top without hitting the ground is to pound the insurance nails in many places and to hold the insurance nail. Turkey can carry on its path in the next decade without failing and without stopping by having all its risks insured and having its insurances reassured by overseas reassurance companies, in other words by exporting all risks to abroad. Today, while the total credit provided to the economy by banking system is around USD 400 billion in total, the insurance system, by guaranteeing a risk at the amount of USD 24 trillion, makes a bigger contribution to the Turkish economy and society. It is a prerequisite for Turkey to achieve its targets that the share of the insurance sector in GDP which is 1.5% moves towards 5% similar to the European countries. At the end of 2015, the number of life insurance policies exceeded 26 millions. The total of MTPL and Comprehensive Car insurance policies exceeded 21 millions, the number of EQI policies reached 6,6 millions,  Pension System 30% growth and Auto 21% growth. These numbers demonstrate how much Turkey believes in the necessity and importance of insurance. If the growth continues in the same speed, it is envisaged that the end of year premium production will exceed USD 13 billion with a growth of 15%. Better, safer, wealthier, happier future will be provided by Insurance for Turkey. In order for the insurance business to increase and grow, Insurance Information and Monitoring Centre, we have launched many projects and we will soon start to actualize them. Maybe, the project on transferring to the central system, that is, to our Centre, the information in real time at the moment when the policies are drawn up, which is a first in the world, would be the biggest achievement of the sector. I hope that Turkey's 2023 targets will be accomplished in the extreme and Turkey easily becomes one of the 10 biggest economies in the world. Definitely insurance in order to achieve the targets! Better, more confident, more welfare, more powerful, more happy future will be in Turkey by Insurance.

Best Regards