Türkiye: Compulsory quake insurance coverage amounts and tariff rates to rise from February
Source: Middle East Insurance Review | Feb 2024
The Insurance and Private Pension Regulation and Supervision Agency has increased compulsory earthquake insurance coverage amounts and tariff rates. The increases will be applied as of 1 February 2024.
The reason for the increases in insurance coverage and tariff rates is to support policy renewals and provide more financial assurance to homeowners, according to local media reports.
According to a notification published in the official gazette, the minimum premium amounts to be paid for compulsory earthquake insurance will not be less than TRY979 ($33), TRY869, TRY739, TRY693, TRY521, TRY370 and TRY252, respectively, from the first to the seventh risk groups.
The maximum amount of coverage that can be given for a residence has been increased from TRY640,000 to TRY1.272m.
Square metre prices, which are the basis for calculating the insurance cost, were increased from TRY3,016 to TRY6,000 for reinforced concrete buildings and from TRY2,080 to TRY4,000 for other structures.
In addition, for the first time, inflation protection will apply to policies issued after 1 January 2024. Square meter prices will be increased every month in line with the inflation rate as measured by the domestic producer price index announced by the Turkish Statistical Institute in the previous month.
Policyholders who already have an insurance policy can double their coverage and benefit from inflation protection by arranging for riders and paying a low additional premium. M