The insurance sector opposes the reduction of the government contribution in the Private Pension System (BES).

Reactions to the Reduction of Government Contribution

TSB President Gülen expressed that they do not support the potential reduction of the current 30% government contribution rate to 20%, which applies under the Individual Retirement System (BES). He reminded that BES has demonstrated success since 2003 and, as of today, it reached 20 million participants with a fund size of 2 trillion lira.

The Role of Government Contribution and Suggestions

Gülen stated that the government contribution plays a strategic role in the growth of the BES system and made some suggestions:

• Gradual Government Contribution: To maintain the 30% contribution rate but differentiate it according to the participant profile.
• Youth Incentive: To offer higher contribution amounts to newly participating youth and lower rates to those approaching retirement age.

2025 Target: 1 Trillion Lira Premium Production

The TSB President emphasized that the insurance sector will have a very productive year in terms of both growth and profit for 2025, noting that over 1 trillion lira premium production has been generated in the first 11 months of this year, indicating a 47% growth compared to the same period last year.

He also added that, thanks to the high TL interest rate environment, the sector's equity profitability has exceeded 40%.

Innovations in Traffic Insurance

Gülen provided information about the new period that will start in traffic insurance as of January 1, 2026, announcing that injustices in the no-claims discount system would be eliminated. He stated that the standard 4th level entries for purchasing a second vehicle would be revised according to the driver's record (good or bad driving history).

Health Insurance Goals

Gülen mentioned that they aim to further grow health insurance, defined as the "star branch" of the last 10 years, targeting to increase the number of insured individuals from 8.5 million. He noted that 80% of health expenditures in Turkey are covered by the public and emphasized that transferring 10% of this burden to private insurances would save 1 billion dollars for the public budget. The sector's goal is to raise the penetration of private health insurance to 20% levels.