News Middle East16 May 2018

Turkey:New quake maps will affect insurance tariffs

| 16 May 2018

The Turkish Catastrophe Insurance Pool (TCIP) is updating earthquake maps, the outcome of which will affect compulsory earthquake insurance tariffs, says the organisation's president Mr Murat Kayaci.

"New maps make studies on risks more sensitive,” he continued, adding that studies can be made on smaller areas than previously. “Changes in the tariff system will come on the agenda. We will do these with the industry. Our technical work continues. We will get results shortly," he said.

"We are at a good point in insurance,” Mr Kayaci stated, adding that it is very important to continue to increase compulsory earthquake insurance (DASK) coverage.

Since 2000, when DASK was established following the devastating 1999 Marmara Earthquake, the proportion of Turkish residents who have compulsory earthquake insurance has increased to 47.8% at present. This means that 8.45 million residential units are under DASK, reports Insurance Gazette. While DASK is mandatory, there is little enforcement to ensure that all households acquire the cover.

The highest coverage rate is in Marmara with 57.8% while the lowest rate is in Southeast Anatolia with 33.8%.

Quake coverage needs to increase

Mr Kayaci said, ”It is especially important that we exceed 60-70% because when we exceed these rates, DASK will be a norm in people's eyes. They will demand DASK more.”

“You know, DASK is compulsory insurance,” he said, adding that the TCIP does not penalise those who don't adhere to the requirement but instead encourage Turkish residents to acquire the insurance. “For this reason, we attach great importance to work that will raise awareness.”

Mr Kayaci also said that the TCIP's disaster call centre is expected to accelerate quake damage detection and insurance compensation processes, especially after major earthquakes. The centre will start working at full capacity soon. It seeks to obtain information quickly after an earthquake, and better manage damage processes.


 

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