Insurance key to economic resilience, Turkish official says

Strong economies are backed by strong insurance systems, as insurance today is not only a mechanism for covering risks but also one of the key factors of economic resilience, social protection and recovery after crises.

Report informs that Ahmet Yasar, President of the Insurance Association of Türkiye, said this at the 11th Azerbaijan International Insurance Forum in Baku.

According to him, when the growth of the insurance sector is discussed, what is actually being addressed is countries' economic resilience, social well-being and ability to look to the future with confidence.

"Today, insurance is no longer just a sector that protects against risks. Insurance is not an expense, but the clearest indicator of societies' confidence in the future. Insurance is the financing of economic development, the cornerstone of social protection and the guarantee of recovery after disasters," he said.

Yasar noted that the current period is marked by a reshaping of global risks. According to him, the consequences of climate change are becoming increasingly visible, the number and destructive power of natural disasters are growing, cyber risks are creating new economic threats, and population aging is making it necessary to review pension systems.

He also pointed to rising healthcare costs and the impact of artificial intelligence, which is changing approaches to work.

"All these processes show us an important truth: risks are growing, becoming more complex and do not recognize borders. That is why the insurance sector is no longer an area that merely covers damage and pays compensation. Insurance has become a strategic sector that manages risks, strengthens economies and increases the resilience of societies," Yasar said.