Turkey outlines new insurance and pension roadmap in Medium-Term Program

Turkey’s Medium-Term Program (OVP) for the 2027–2029 period outlines a new roadmap for the insurance and private pension sectors. The plan aims to increase domestic savings and financial literacy while redesigning the Private Pension System (BES) to provide higher value through improved investment funds. Key updates include increasing fund diversity in the Automatic Enrollment System (OKS) and simplifying deduction processes.

A significant component of the program is the introduction of a mandatory disaster insurance mechanism designed to cover all types of disaster risks. Additionally, the government plans to expand life insurance products and enhance State-Supported Receivables Insurance to mitigate collection risks for small and medium-sized enterprises (SMEs).

To address demographic shifts such as an aging population and declining fertility rates, the OVP introduces long-term care insurance. This initiative aims to support individuals struggling with daily needs due to old age or chronic illness, providing services both at home and in care facilities. The program also seeks to improve the fiscal sustainability of the social security system by integrating remote health applications and implementing value-based reimbursement models in healthcare.