Lloyd's broker Turker has announced the launch of a first-of-its-kind Turkey Earthquake Industry Loss Warranty (EQ ILW) product, designed to create a new market for insurers, reinsurers and ILS companies.
Turker states that its new solution is the first one in Eastern Europe and MENA.
The new product responds to the industry quake losses for an event and can act as an effective hedging tool for insurance and reinsurance companies to write Turkey quake risk.
Mr Eray Turker, director and CEO of Turker Re, said, “We have big ambitions and our new EQ ILW is an important step forward in developing that market. The ILW product brings additional and alternative capacity for Turkey EQ and any insurer or reinsurer being exposed to Turkey EQ risk can benefit from that.
"Considering the hardening retrocession market, we believe that this product will be a good complementary and alternative to the existing reinsurance and retro programmes. Innovative products like the new ILW demonstrate our technical abilities and willingness to be a market leader in Alternative Risk Transfer (ART) in the region.”
An ILW structure enables coverage to be taken out based on the total insured industry loss, and as such a third party is needed as an objective decision-maker surrounding the size of the market loss.