Bendevi Palandöken, President of the Confederation of Turkish Tradesmen and Artisans, is undoubtedly one of our country’s most important civil society leaders. For many years, he has been the voice of millions of tradespeople, bringing their issues to the public’s attention and serving as one of the strongest advocates in the search for solutions. He has succeeded in keeping the hardships faced by tradespeople on the agenda, particularly through his statements during periods of increasing economic hardship.
For this reason, Mr Palandöken’s statements should not be viewed merely as the assessment of an institutional leader; they should also be regarded as significant views reflecting the thoughts and expectations of millions of tradespeople.
However, his recent statements regarding motor insurance and comprehensive insurance have sparked serious debate within the insurance sector.
Of course, Mr Palandöken’s aim is to bring the financial burdens faced by small business owners to the fore. The fact that motor insurance and comprehensive insurance premiums have reached high levels for certain vehicle categories has become a significant cost item, particularly for owners of commercial vehicles. In this regard, acting as the voice of small business owners and articulating their concerns is an entirely natural and necessary duty.
However, when we look at the other side of the coin, we see that certain fundamental truths regarding the functioning of the insurance system have not been adequately explained to the public.
Insurance is often perceived as being solely about policy prices. Yet, the sector’s primary aim is not to collect premiums, but to assume the financial burden that arises when a risk materialises. Covering millions of liras in bodily injury claims following a road traffic accident, repairing severely damaged vehicles, compensating third parties for damages, and managing countless legal proceedings are merely a fraction of the responsibilities undertaken by insurance companies.
Today, the motor insurance sector in Turkey remains one of the areas most frequently debated from a technical perspective. Rising vehicle prices, increasing costs of spare parts, labour costs, healthcare expenses and compensation liabilities directly impact insurers’ costs. Consequently, when assessing policy prices, one must look not only at the premiums paid by the public but also at the risks the system is obliged to cover.
It is precisely at this point that a significant shortcoming in the sector becomes apparent.
The insurance sector often falls short in communicating its realities to the public. Citizens, tradespeople and even many opinion leaders may lack sufficient knowledge about how the insurance system works. This situation can sometimes lead to misconceptions and result in the sector facing unfair criticism.
For this reason, I believe that key organisations within the sector, particularly the Turkish Insurance Association, have important responsibilities. Sector representatives need to engage more frequently with influential figures in the public sphere, explain the fundamental dynamics of the insurance industry, and enhance mutual knowledge-sharing.
It would be beneficial for both the business community and the sector if a figure like Bendevi Palandöken, who represents millions of small business owners, were to offer assessments based on more comprehensive and up-to-date information regarding the insurance system. This is because Mr Palandöken’s statements do not merely remain as a simple opinion; they resonate widely within the public sphere and shape many people’s perspective on the insurance industry.
The aim here is not to criticise, but to strengthen communication.
The insurance sector and the small business community are, in fact, in the same boat. On one side is the insurance system, which assumes risks and provides economic security; on the other is the small business sector, which forms the backbone of the national economy. These two entities must not be pitted against one another, but must find common ground.
I believe that if the relevant institutions provide the necessary information and mechanisms for mutual dialogue are strengthened, the process moving forward will yield much clearer explanations, more productive collaborations and a more accurate public perception.
Because insurance is not merely about selling policies.
Insurance is an invisible system of security that enables people and businesses to get back on their feet in the event of an accident, a fire, an earthquake or a disaster. Ensuring this system is properly understood is a shared responsibility of both the sector and society.
Erhan Navruz
insurer724.com Editor
