BAKU, Azerbaijan, October 28. Integration of the Turkic insurance space will serve regional economic stability, Secretary General of the Insurance Association of Türkiye (TSB) Ozgur Obali told Trend on the sidelines of the "Turkic States InsurTech Summit 2025" held in Baku today.
According to him, strengthening the Turkic insurance space, increasing mutual trust, and integrating the regional market are among the main goals for the future.
He spoke about the global challenges facing the insurance sector, technological solutions and joint cooperation opportunities in this area, and the impact of climate change, energy transition, and the green economy on insurance portfolios.
Increasing access to insurance—the main goal of the sector
According to Obali, one of the most important issues of the insurance sector is increasing access to insurance.
"This is a pressing issue not only for developing countries but also for developed and underdeveloped countries. The main goal is to spread the insurance mechanism to all segments of society and ensure that each individual is protected against financial risks," he explained.
The secretary general also pointed out that when the protection gap widens (i.e., risks not covered by insurance), the financial losses for people can really hit home.
"However, insurance is the main guarantee mechanism that minimizes these losses. Therefore, eliminating this gap is one of the main goals of both the World Insurance Association and the European and Turkic States Insurance Association, of which we are a member, including Azerbaijan.
One of the most important issues in this direction is increasing insurance literacy and promoting education and cultural change. Unfortunately, in some societies, insurance is perceived as a "reality determined by fate." However, insurance is a real and effective tool for sharing and transferring financial losses," said Obali.
Turkic States Insurance Union—The foundation of a common vision
Obali noted that the main goal behind the idea of the Turkic States Insurance Union is to unite countries with a common culture, language, and history under a single insurance vision.
"This is of great importance not only in terms of economics but also in terms of social and strategic cooperation. Because insurance is based on the "law of large numbers," that is, the wider the pool (common financial mechanism), the more balanced the risks are and the more sustainable the sector becomes.
For this, more regional cooperation, joint projects, and the removal of mutual regulatory barriers are important. The goal is to develop insurance in the Turkic world and share experience and resources," he added.
Integration of technology—the "InsurTech" revolution
Obali pointed out that the integration of technology into insurance ("InsurTech") is of particular importance.
"The spirit of innovation and entrepreneurship is strong in the Turkic world, and by combining this potential with the insurance sector, it is possible to develop modern, technology-based products. In this regard, initiatives such as 'InsurTech Hub' are very valuable," he announced.
The secretary general emphasized that concrete projects are currently being implemented in three main areas: 1) Joint education and cultural programs—to increase insurance knowledge; 2) Merging "Reassurance" (reinsurance) pools—to share risks more widely and take advantage of the "law of large numbers" more effectively; 3) Technology and experience exchange ("know-how" transfer)—for the implementation of modern insurance systems.
Climate change and its impact on the insurance sector
Obali noted that climate change and its impact on the insurance sector require special attention.
"Urbanization, soil salinization, water-resistant environments, and the increase in natural disasters (floods, fires, droughts, etc.) create new risks. Against this, the application of parametric insurance products and the development of innovative risk management solutions are important.
In the field of agriculture, there is close cooperation between the TARSIM (Agricultural Insurance Association of Türkiye) model operating in Türkiye and the Agricultural Insurance Fund of Azerbaijan. Both parties are actively working towards establishing a common insurance pool and sharing Türkiye's experience and know-how in this field with Azerbaijan," he clarified.
Looking to the future: integration of the Turkic insurance space
"Agriculture plays a crucial role not only in economic
frameworks but also in the maintenance of social equilibrium and
the assurance of food security. Consequently, enhancing synergies
in this domain is deemed a strategic imperative.
In summary, fortifying the Turkish insurance landscape, enhancing
reciprocal confidence, and synergizing the regional marketplace are
pivotal objectives for the forthcoming trajectory," Obali
concluded.
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