Compulsory quake insurance coverage reaches 58%

The earthquake insurance coverage rate in Turkey has crept up to 58% at present from 56% last year, according to data released by the Natural Catastrophe Insurance Pool in conjunction with the 22nd anniversary of the devastating Marmara Earthquakes in 1999 that fell on 17 August.

On a regional basis, the Marmara Region ranks first with an coverage rate of 70%, followed by:

• Aegean, 59%

• Central Anatolia, 54%

• Eastern Anatolia, 51%

• Mediterranean and Southeastern Anatolia, 50%, and

• Black Sea, 46%.

The average annual premium is approximately TRY163 ($19.40), and the highest insured amount for residential property is TRY268,000.

TCIP Coordinator Erdal Turgut told Insurance Gazette, “Today, the insurance rate in our country has reached 58%. As TCIP, we make all our plans considering a possible major Istanbul earthquake, and our loss compensation capacity has increased to TRY40bn.”

This capacity, under the management of Turk Reasurans, has been created completely independently of government resources and will only be used for the compensation of earthquake-induced damages to the homes of Compulsory Earthquake Insurance policyholders.

Goal

Mr Turgut added, “Our goal, of course, is to reach a 100% coverage rate and to insure all homes within our scope under the Compulsory Earthquake Insurance scheme. That's why we declared 2021 as the year of mobilisation with the goal of reaching 100% insurance coverage.”

TCIP operates the Compulsory Earthquake Insurance scheme (DASK), which was established in 2000 after the 17 August 1999 Marmara Earthquake to cover damages caused by earthquakes to residential properties.

The total amount of compensation paid out by TCIP to the insured since its establishment has reached TRY1bn.

Source: meinsurancereview.com