The insurance sector opposes the reduction of the state contribution in the BES.

Reactions to the Reduction of Government Contribution

Regarding the possibility of reducing the current 30% government contribution rate applied within the Individual Retirement System (BES) to 20%, TSB President Gülen stated that they do not support this change as a sector. He reminded that BES, which has shown success since 2003, has now reached 20 million participants and a fund size of 2 trillion lira.

The Role of Government Contribution and Suggestions

Gülen expressed that the government contribution plays a strategic role in expanding the BES system and made several suggestions:

• Gradual Government Contribution: Maintaining the 30% contribution rate but differentiating it according to participant profiles.
• Incentives for Youth: Providing higher contribution amounts for new young participants, while offering lower rates for those approaching retirement age.

Target for 2025: 1 Trillion Lira Premium Production

The TSB President emphasized that the insurance sector will be quite profitable in terms of growth and profit for the year 2025, stating that over 1 trillion lira in premium production has been achieved in the first 11 months of this year, representing 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 return on equity has exceeded 40%.

Innovations in Traffic Insurance

Providing information about the new period in traffic insurance starting on January 1, 2026, Gülen announced that the inequities in the no-claims discount system would be eliminated. He noted that the standard 4th step entry applied for second vehicle purchases will be revised according to the driver's record (good or bad driving history).

Goals for Health Insurance

Gülen stated that they aim to further grow health insurance, which has been labeled as the "star branch" of the last 10 years, and intend to increase the number of insured individuals from 8.5 million. He pointed out that 80% of health expenditures in Turkey are covered by the public, emphasizing that transferring 10% of this burden to private insurances would provide a 1 billion dollar saving for the public budget. The sector's target is to increase the penetration of private health insurance to 20% levels.