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

Reactions to Reduction of State Contribution

Regarding the possibility of reducing the current 30% state contribution rate under the Individual Pension 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, currently has 20 million participants and has reached a fund size of 2 trillion lira.

Role of State Contribution and Suggestions

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

• Gradual State Contribution: Maintaining the 30% contribution rate but differentiating it based on participant profiles.
• Incentives for Youth: Offering higher contribution rates to new young participants while providing lower rates to those approaching retirement age.

Goal for 2025: 1 Trillion Lira Premium Production

TSB President emphasized that the insurance sector will have a highly productive year in terms of both growth and profit in 2025, stating that over 1 trillion lira premium production has been achieved in the first 11 months of this year, marking 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 era in traffic insurance starting from January 1, 2026, Gülen announced that the injustices in the no-claim discount levels would be eliminated. He stated that the standard entry to the 4th step applied to second vehicle purchases would be revised based on the driver’s record (good or bad driving history).

Health Insurance Goals

Gülen mentioned their goal to further grow the health insurance sector, which has been defined as the "star branch" of the last 10 years, aiming 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 the public budget 1 billion dollars. The sector’s target is to increase the penetration of private health insurance to 20% levels.