Ahmet Yaşar, General Manager of Quick Sigorta, has evaluated the Economic Reform Package in the aspects of investments and non-life insurance.
While the new reform package announced by H.E. President Erdoğan last Friday created excitement in various topics, BES (Private Pension System) granting access to the underaged and becoming available for funds created excitement in the Life Insurance side. Ahmet Yaşar, General Manager of Quick Sigorta, has brought up a topic which was a mostly invisible for the markets and the insurance sector.
Ahmet Yaşar stated that the establishment of the Stock Insurance Fund is the most exciting topic for him regarding investment and insurance sector in the reform package and continued his speech as follows:
“The decision regarding the establishment of Stock Insurance Fund is one of the most important reforms in the announced Economic Reform Package. Companies that could not access the stock market before will be able to access the market with the Stock Insurance Fund. Both corporate and individual investor in stock markets will be able to create demand to loaning tools of the real sector companies with the insurance provided by the insurance fund.
When we examine the source of the financing of real sector companies in our country we can observe that bank financing is the most important source. Factoring, leasing and financing companies provide sources as limited. When we examine these companies, we can see most of them are the ventures of banks. However, we know that the sources provided by the exportation of stock market loaning tools take a significant place in developed countries.
In our country, funds managed by market actors such as private pension funds, insurance company funds, unemployment insurance funds, foundations and funds, and large individual investors have reached levels expressed in hundreds of billions. More importantly with the economic expansion policies of the world central banks have created trillions of dollars of funds searching for a place to invest. Bringing them together with real sector companies is required. In this sense, we think that the Stock Insurance Fund which will be established is crucial.
The major problem of the investors in the stock market is managing the loan risk created by companies that export loaning tools and loaning tools themselves. In developed markets, loaning tools can be insured and the investors and investors can manage the risk with the bonuses they pay. Quick Sigorta has been working to give insurance for similar market tools since October 2020. In October 2020, we have supported the exportation of security insurance of Asset-backed securities for 15 Million Turkish Liras for the first time in Turkey. Both exportations have gathered a lot of attention from investors. As far as we have understood, one of the reasons for this attention is the Quick Sigorta security insurance on the securities. The most important attribute of the two said exportations was that the exportation never accessed the stock market before.
In this regard, we support our government on the reforms regarding the establishment of the Stock Insurance Fund. Given a task, we would like to support it financially. We think different models could be established. For example, the task of establishing the fund could be assigned to insurance companies. Insurance companies that are eager can determine the market and the directors of the fund and create an efficient structure. And the government can be a partner to the fund. Millions of Liras of capacity can be created with the reassurance support provided to the fund. We can also play a leading role in bringing together stakeholders such as independent audit companies, rating companies, brokerage firms and real sector companies with the lowest cost. If our government wants to establish the fund directly, we can have our capacity used by giving coinsurance support to the Stock Insurance Fund.