Page 7 - Turkinsurance Digital Magazine

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BES will be an assurance package for every period of life

Insurance Week which is organized by the Insurance Asso-
ciation of Turkey, reference center of insurance in Turkey,
between 31st of May - 4th of June is continuing with panel
series named Insurance Meetings. In the panel with the sub-
ject of TURKEY’S RISING VALUE: PRIVATE PENSION
SYSTEM, ITS ACHIEVEMENT AND GROWTH POTEN-
nd
TIAL hold on the 2 day of the meetings, Uluç İçöz, Vice
President of Private Pension Regulation and Supervision
Agency (SEDDK), Tevfik Eraslan, Chairman of the Board
of Turkish Capital Markets Association (TSPB), Taylan
Türkölmez, General Manager of Allianz Türkiye Hayat ve
Emeklilik Companies and Economist Prof. Dr. Sadi Uzu-
noğlu have met. Uluç İçöz, Vice President of SEDDK, gave
a speech in the panel and said individuals will be provided financing so that we can provide the finance that our entre-
with a package that offers assurance for every period of preneurs need for new investments Then, a Silicone Valley
life including education, health, military service, marriage, can also be founded in Turkey.”
buying house, elderly care thanks to the new regulations to
be issued for BES. The total net asset value of the fund of 180 billion TL
reached in BES
“The development of BES will guarantee our pension
income in the future” Taylan Türkölmez, Vice President of Insurance Associ-
ation of Turkey (TSB) and General Manager of Allianz
Uluç İçöz, Vice President of SEDDK, gave a speech in the Türkiye Hayat ve Emeklilik Companies stated that having
panel titled Turkey’s Rising Value: Private Pension Sys- a history of nearly a century in the world, BES is very
tem, Its Achievement and Growth Potential and said that young as a system that has been implemented in Turkey for
in OECD countries, the ratio of BES funds to GNP is 80- 18 years, yet it showed a significant performance with a
90 percent, while this number is 3.5 percent in Turkey and fund size of 180 billion TL and the number of participants
this shows that we need to spend a great effort. close to 13 million. Türkölmez stated that they believe that
BES, which has made great contributions to the economy
İçöz added that: “Demographically, Turkey still has a and financial system, will come to a very good point with
young but aging population. It is essential to increase the the planned reforms and mentioned the transformative
weight of BES in the economy to produce a pension in- power of BES in terms of disciplining the saving behav-
come for our population, 20-25% of which will be over the ior of Turkish people, who still invest 60 percent of their
age of 65 in the near future. In this regard, we think that investments in real estate and gold. He highlighted that
this can be possible by including underage people in the especially with the young population meeting with BES and
scope of BES. Also, we continue the infrastructure works adopting BES, the system will grow continuously by gain-
to make BES a comprehensive assurance package for every ing a more agile and digitalized feature.
period of life including education, health, military service,
marriage, buying house, elderly care.” “Deposits held in foreign currency create a risky exchange
rate environment”
BES means long-term source of finance for all sectors
Economist Sadi Uzunoğlu stated that although it has
Tevfik Eraslan, Chairman of TSPB, who is another speak- reached a good point in BES, it still needs development
er at the panel, said that BES and the insurance sector are considering that PPS funds constitute 3.5 percent of the
very important bases for the capital market. Eraslan stated country’s income. Uzunoğlu pointed out that the average
that in Turkey, the investment in bank deposits is 80 per- 60-day maturity of deposits in banks in Turkey should be
cent and the investment in the capital market is 20 percent evaluated in terms of investor behavior and long-term in-
and said that in developed countries these rates are just vestment awareness should be developed in investors. He
the opposite, and capital markets will be empowered with stated that particularly, investments held in foreign curren-
the growth of BES and insurance so that the access of the cy cause a risky exchange rate environment and highlighted
companies to long-term financing will increase. that this problem can be overcome with innovations and
regulations that will pave the way for the insurance indus-
Eraslan added that: “Growth and development are about try, BES, and investment banking.