Turkey: September earthquakes boost demand for insurance
Source: Middle East Insurance Review | Dec 2019
Demand for compulsory earthquake insurance has increased sharply after the magnitude 4.6 and 5.8 earthquakes struck Istanbul on 24 and 26 September, respectively.
The magnitude 5.8 earthquake on 26 September was recorded as the most severe earthquake in the region after the 1999 Marmara Earthquake.
The Turkish Catastrophe Insurance Pool (TCIP) and Turkey Insurance Association said the most number of quake policies sold on a monthly basis in the last three years was seen in September 2019. After the 26 September earthquake, on average, more than 20,000 residential units a week purchased earthquake insurance policies, reported Insurance Gazette.
As of 25 October 2019, the number of insured houses in Istanbul reached 2.42m and the insurance coverage rate reached 65.7%. There are around 3.68m residential properties in Istanbul. The compulsory quake coverage rate in Istanbul stood at around 60% at the end of last year.
Across Turkey as a whole, mandatory earthquake insurance in force for residential property stands at 53% with around 9.3m homes insured. M