Explore strategic initiatives shaping Turkey’s insurance and pension systems in the Medium-Term Program to drive growth and resilience.
The newly published Medium-Term Program (MTP) for 2026-2028, which sets the direction for Turkey’s economic strategy, has included significant allocations for the insurance sector and the Individual Pension System (IPS). The detailed program, spanning 74 pages, has been officially enacted with a focus on financial stability and enhancing savings.
Uğur Gülen, head of the Turkish Insurance Association (TSB), expressed enthusiasm for this recognition, stating: “The incorporation of insurance and IPS within the new Medium-Term Program underscores their vital role in bolstering our nation’s economy. While we are proud of this acknowledgment, it also enhances our responsibility to deliver on our commitments. Our dedication remains firm, as we persist in contributing to Turkey’s economic advancement.”
Enhancing Trust and Technological Integration in Insurance
The program outlines ambitious targets to diversify the insurance sector, improve its resilience, and strengthen public trust. Future regulations aim to advance insurance legislation, establish frameworks for digital innovations in the field, and support agricultural insurance expansion. Moreover, there’s an emphasis on comprehensive disaster insurance, ensuring coverage for various risks—natural disasters from earthquakes to floods, forest fires, and others.
Gülen highlighted that insurance not only mitigates risks but also supports economic resilience and fosters investments: “Insurance serves as the unseen safeguard for economies. By covering a broad spectrum—from natural disasters to agriculture, industry, and individual insurance—it underpins sustainable development. This vision, prominently featured in the Medium-Term Program, showcases the sector’s integral role in the economic ecosystem.”
Focus on BES and Long-Term Financial Security
Alongside promoting savings in the MTP, considerable attention is awarded to the Individual Pension System. Establishing the Supplementary Pension System (TES), restructuring standard pension funds, enhancing partial payment options in the BES, and encouraging youth and student enrollment are pivotal goals. Additionally, promoting investment-linked life insurance is a targeted objective.
Gülen categorized the Individual Pension System as a crucial tool for Turkey’s long-term financial savings: “Beyond securing retirements, BES channels long-term resources into economic growth. With the planned regulatory advancements, we anticipate a surge in participant numbers and fund growth—vital for elevating national savings rates and financing opportunities.”
Advancing Participatory Finance
The strategy includes widening the scope of participatory insurance and pension schemes. Gülen noted: “Participatory insurance and systems are key to expanding financial inclusivity. Strengthening these regulations will not only enhance sector dynamics but also offer broader access to diverse communities.”
Enduring Commitment to National Progress
Affirming the sector’s readiness to meet MTP targets, Gülen concluded: “Insurance and BES are foundational to our national prosperity and sustained economic growth. As stakeholders, we stand ready to collaborate with public entities to evolve an inclusive system that enhances confidence and mobilizes savings across societal spectra.”
