"The Role of the Insurance Sector in Creating More Resilient and Safer Societies"

The twelfth Insurance Week has started to be celebrated as of today. The theme of this year's Insurance Week, which will be held between 25 September - 1 October, is "The Importance of the Insurance Sector in Preparing for Earthquakes and Natural Disasters".

As important sectoral organisations such as international insurance summits are preparing to be held during the week in question, senior executives of national insurance companies have started to convey their views on the importance of insurance and this year's theme.

Businessman Kazım Gökçe, the Chairman of the Board of Directors of Gri Sigorta and Paragon Holding, the umbrella company serving in 25 countries, was one of these names.

Stating in previous interviews that they incorporated Gri Sigorta in order to bring change to the insurance sector and to provide solutions to sectoral needs that have not yet been met in our country, Gökçe emphasised that this year's insurance week has a special importance.

Emphasising the earthquake disasters experienced in our country in February, Gökçe said the following about the subject: "We experienced a major disaster in 2023. This disaster, the effects of which are still continuing, actually showed us once again the importance of the insurance sector.

In unpredictable situations such as natural disasters that cause great damage and financial loss, insurance helps individuals, businesses and societies recover after a disaster and acts as an important safety net.

Insurance primarily provides financial assurance when a disaster strikes. As we know, the financial costs associated with rebuilding homes, replacing belongings and covering medical expenses can be enormous. Insurance policies help individuals have the financial means to recover and rebuild their lives after such catastrophic events. This financial stability is crucial to minimise the long-term impact of a disaster."

Underlining that the insurance sector is also of great importance in terms of actively promoting risk mitigation and disaster preparedness, Gökçe said: "Insurance companies work in close co-operation with policyholders to assess and mitigate risks. They encourage safer practices such as strengthening buildings against earthquakes and implementing flood prevention measures. In this way, the insurance industry not only protects against financial losses, but also contributes to building more resilient and disaster-ready societies."

Stating that through insurance premiums, resources are pooled and the financial burden is distributed to a wider range of people, Gökçe said that this prevents any one party from bearing the full weight of the financial consequences of the disaster and that by redistributing the risk, societies are stabilised and a collective effort is formed to cope with unpredictable disasters.

Emphasising that insurance payments transfer the necessary funds to the regions affected by disasters, Gökçe said, "These funds help to rebuild local businesses, protect jobs and revitalise the economy. In this respect, we can say that insurance acts as an economic shock absorber that mitigates the long-term economic effects of disasters and facilitates a faster recovery process. In short, we need to realise that insurance plays a very important role especially in the recovery from disasters. By providing adequate guarantees, we can weather the storm better thanks to the insurance sector, and we can emerge more resilient and safer societies."