''Transformation Initiative from the Insurance Association of Türkiye (TSB) in Life Insurance''
The Insurance Association of Türkiye (TSB) has announced a comprehensive transformation initiative aimed at turning life insurance into a strategic lever for the Turkish economy.
The published position paper reveals that, by further advancing the sector’s existing potential, premium production could be increased to 2 percent of GDP, while also indicating that a new financial protection area worth hundreds of billions of Turkish lira could be created for broad segments of society, ranging from employees and children to savers and retirees. Supported by digitalization, product diversification, and investment-linked insurance products, this transformation aims to generate additional funds worth trillions of Turkish lira over the next 10 years, strengthening both the financial security of individuals and the resilience of the Turkish economy.
The Insurance Association of Türkiye (TSB) has shared with the public its comprehensive “Life Insurance Position Paper,” which will shape the development of life insurance. While presenting the current state of the sector, the study also offers concrete policy recommendations for the expansion and deepening of life insurance in Türkiye. Having achieved strong growth momentum in recent years, the sector reached a premium production volume of TRY 178.9 billion as of 2025, while payments made to policyholders amounted to TRY 29.7 billion. During the same period, the scale of financial protection provided reached TRY 8.5 trillion in death coverage and TRY 5.7 trillion in disability coverage for 15.4 million policyholders.
Target to Double the Protection Shield!
Despite this progress, the share of life insurance in the economy still remains below the averages of developed countries. According to the Insurance Association of Türkiye (TSB), implementing the transformation steps defined in the position paper would make it possible to increase premium production to the level of 2 percent of GDP and double the financial protection provided to individuals and households. Doubling the protection shield is considered highly important in strengthening the resilience of households and individuals against challenging conditions arising from economic, social, and natural disaster-related risks.
Product Diversification and Increased Awareness
The report indicates a significant need for transformation, as the current production structure is largely based on credit-linked products, while savings-oriented products remain limited. In this context, the development of savings-oriented products, the acceleration of digitalization, and the strengthening of alternative distribution channels stand out as priority areas. In addition, by increasing the promotion of supplementary coverages included in life insurance policies, the aim is to raise policyholders’ awareness of policy scope and increase the number of people benefiting from these coverages.
The Importance of Credit-Linked Life Insurance
Credit-linked life insurance products also play an important role in closing individuals’ protection gaps. In Türkiye, 61 percent of the total protection provided by the life insurance sector comes from credit-linked life insurance products. Indeed, following the February 6 Kahramanmaraş earthquakes, 80 percent of the TRY 1 billion in life insurance compensation paid out was provided through credit-linked life insurance policies. In terms of the expected Istanbul earthquake, life insurance products are of great importance. Of the total TRY 3 trillion death coverage provided to the Marmara Region, 54 percent comes from credit-linked life insurance products, while these products also account for 56 percent of the TRY 2 trillion disability coverage.
A New Protection Area for Employees
The Insurance Association of Türkiye (TSB) states that if tax and social security premium incentives are provided to employers and flexible coverage models are introduced, a financial protection shield worth TRY 250–300 billion could be created under group life insurance policies, particularly for employees in the lower- and middle-income segments.
Protection for Children’s Future
Life insurance also holds particular importance for children, who account for approximately 25 percent of Türkiye’s population. According to 2024 data, more than 345,000 children face the risk of economic hardship and interruption of their education due to the loss of a parent. In this context, expanding and promoting education insurance products is being recommended. It is stated that if only 5 percent of the child population—approximately 1 million children—were insured, additional financial protection amounting to nearly TRY 4 trillion could be provided.
Financial Inclusion and New Products
With the introduction of investment-linked insurance products through more than 6,500 individual pension intermediaries operating in the sector, the aim is to make investment funds accessible to broader segments of society. Over a 10-year period, an additional fund capacity of TRY 2.5 trillion (11.5 percent) is projected to be created.
An Aging Population and New Insurance Areas
In Türkiye, the elderly population ratio is expected to reach 12.9 percent in 2030, 16.3 percent in 2040, and 22.6 percent in 2060. In line with this demographic transformation, the importance of long-term savings and protection products is increasing, while the sector is expected to assume a complementary role in elderly care insurance.
Ahmet Yaşar: “Life Insurance Is a Strategic Necessity for Türkiye”
Ahmet Yaşar, President, Insurance Association of Türkiye (TSB), emphasized that life insurance is not merely an instrument of individual protection and stated:
“Life insurance is not only a critical tool for ensuring the financial security of individuals and families, but also one that complements the social security system and contributes to channeling long-term savings into the economy.”
Drawing attention to the fact that Türkiye faces significant risks such as demographic transformation, disaster risk, and increasing economic fluctuations, Yaşar noted that the role of life insurance has become even more important throughout this process.
The position paper underlines that the development of life insurance is not merely an area of sectoral growth, but also carries strategic importance in terms of long-term fund accumulation, the deepening of capital markets, and strengthening economic resilience. The roadmap presented by the Insurance Association of Türkiye (TSB) aims to enable life insurance to reach broader segments of society and assume a stronger role within the economy.
