News Middle East17 Mar 2020

Turkey:Over 8m homes lack quake insurance

17 Mar 2020

More than 8m residential properties in Turkey still need to be covered by earthquake insurance, according to Mr Resit Cakas, president of the Association of Insurance Agencies (SAB).

He noted that at present, approximately 9.6m houses are insured, according a report in Insurance Gazette.

He said that the Turkish Catastrophe Insurance Pool (TCIP), which was established in 2000, has increased in importance day by day. The pool insures home owners for earthquake risks with coverage determined by factors like the quake risk level of the region where the home is located, and construction costs. Whenever homeowners apply for electricity, natural gas or water services, they are required to subscribe to the compulsory scheme.

Mr Cakas said that the problem is that many households fail to renew the earthquake insurance policy when the original contract has expired. He said that a large part of TCIP contracts are bought by those with lease agreements.

He added, “Currently, TCIP's monthly premium is just over TRY10 ($1.55) per dwelling. If we can increase this cost to TRY25-30per month, people can get more services and the risk coverage limit can increase significantly.”

He said that agents would be the biggest channel to grow the pool. “Approximately 16,500 insurance agents will do their part,” he said. “65% of the production in the sector is through agents,” he said. 


 

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