Page 15 - Turkinsurance Digital Magazine

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Insurance and private pension sectors

grow with new developments

Atilla Benli, Chairman of the Insurance Association of Turkey: “The entry of the under-
18s into the system will increase national savings”

Recently, many new regulations have million participants as of 04.06.2021 nies have successfully carried out trans-
been implemented in the fields of in- with a fund size of more than 185 billion actions regarding the requests of our par-
surance and private pensions. One of TL. ticipants through digital media. There is
the most talked-about is innovations an infrastructure that can carry out all
in private pensions. How do you inter- With the amendment of the New Law, transactions from the establishment of
pret the opening of the entrance to the the target audience, which constitutes 24 the contract to the change of fund dis-
under-18 section to BES? million of our population, is under the tribution through mobile applications or
age of 18, is included in the BES; it is websites with a single click.
With the law that entered into force after expected that 3 million participants and
being published in the Official Gazette 30 billion funds will enter the system in With the change in the Regulation made
dated May 25, 2021, and numbered the medium term. With the transfer of last May, steps such as the creation of a
31491, the first sentence of the first par- more than 50 foundations and provident structure-based more on electronic com-
agraph of article 4 of the Private Pension funds until 2023, it is thought that a sig- munication tools and information pro-
Savings and Investment System Law No. nificant size will bring a new breath to cesses, as well as the introduction of a
4632 was abolished, and the requirement BES. digital approval mechanism as an alter-
of legal capacity to enter the system was native to wet signature, will ensure that
abolished in order for persons under the “In order to make the the transactions are carried out quite
age of 18 to be included in the system. quickly.
integrated product
With the new regulation, it will be pos- attractive, for example, In this context, it is thought that the Y
sible for those under the age of 18 to generation will be able to follow their
make contracts on their own behalf in the when a participant with savings and communicate with pension
system, and the inclusion of those under BES purchases health companies in a technology-oriented way.
the age of 18 in the system will create a
significant gain in the growth of national insurance, we expect an Will the integrated assurance packages
savings by acquiring savings habits at a additional incentive to be that will be offered with the BES create
young age. strength in areas such as the product va-
offered in addition to the riety offered to the customer and the pro-
We believe that the inclusion of children existing advantages for longation of the insured stay? What will
under the age of 18 in the system in order be the additional benefits of assurance
to increase national savings and spread these two products” packages?
the habit of saving will make significant The presentation of individual pension
contributions to the sustainable growth products, which are the most important
of the BES, which is the savings locomo- Young people and children under the savings tools that our citizens use to
tive of our country, with the transfer ar- age of 18 are very active in the digital earn additional income during their re-
rangements from foundations and funds. field, have a low sense of belonging, tirement periods, and insurance products
As of today, there are no obstacles for and may have different expectations that offer coverage against the risks that
young people under the age of 18 to enter from the Y generation. What could be our citizens may encounter in their lives
the system. the roadmap to attract this segment to will open up an important area for our
the system and ensure long-term per- sector and our citizens.
BES was established in our country in manence?
2003 and has continued its steady growth In order to make the integrated product
since its establishment and reached 12.7 During the epidemic, our pension compa- attractive, for example, when a partici-