The Insurance and Private Pension Regulation and Supervision Authority (SEDDK), the Turkish Insurance Association (TSB), and the senior management of DASK (Turkish Natural Disaster Insurance Pool) have held a series of meetings in Kahramanmaras on the anniversary of the massive earthquakes that occurred in the region on 6 February 2023.
Industry leaders SEDDK President Davut Mentes, TSB Vice President Ahmet Yasar and DASK Chairman Hande Akin were in the delegation that visited the region, and met members of the Kahramanmaras Chamber of Commerce and Industry, reported Insurance Gazette.
The meeting discussed the steps taken to strengthen the economic and commercial structure of the region after the earthquake, the role of the insurance sector in post-disaster recovery, and efforts to increase the resilience of the business world.
The TSB delegation emphasised the importance of increasing public awareness regarding disasters and insurance and creating a more resilient economic structure against risks.
Mr Mentes stated that the experiences gained after 6 February have opened the doors to a new era in insurance, including plans to expand coverage of DASK from earthquakes to all natural disasters. Mr Mentes announced that the work on the Compulsory Disaster Insurance (ZAS), which will encompass all Nat CATs such as floods, landslides, and forest fires under a single policy, is nearing completion. ZAS is planned to be implemented in 2026.
Mr Yasar said that the 6 February disaster caused over $100bn in direct economic losses. That the insurance sector could only compensate for 5-6% of this damage clearly revealed the "protection gap" in Turkey.
He said, "The biggest disaster risk in Turkiye is not earthquakes, but lack of insurance. What restarts life after disasters is not only physical reconstruction, but also the uninterrupted continuation of the economic order."
DASK Secretary General Balkir Demirkan stated that the pool paid claims totalling TRY39bn ($894m) to more than 519,000 residential properties damaged in the Kahramanmaras Earthquake. He added that issues such as accurate square meter declarations and policy continuity, which will be covered by legal regulations to increase the penetration rate.
Insurance coverage rates
DASK data reveal the regional distribution of compulsory earthquake insurance coverage rates. Across Turkey, 11,686,235 out of a total of 20,032,000 residential units are covered by mandatory earthquake insurance. This represents a nationwide insurance coverage rate of 58.50%. Examining the regional distribution, the Marmara Region stands out with a 65.40% coverage rate, with 4,470,619 out of 6,840,000 residential units insured. The Marmara Region also accounts for 38.30% of total policies and 43.90% of total premium production.
Istanbul, which is located in the Marmara Region and is Turkiye’s most important economic hub, has an insurance coverage rate of 63.40%.
Insurance data across different geographical regions of Turkiye
|
Region
|
Total Number of Dwellings
|
Number of Insured Dwellings
|
Coverage Rate
|
Policy Distribution
|
Premiums (TRY m)
|
Share of Premiums
|
|
Marmara
|
6,840,000
|
4,479,212
|
65.50%
|
38.20%
|
8,211.5
|
43.90%
|
|
Central Anatolia
|
3,780,000
|
1,930,183
|
51.10%
|
16.50%
|
2,086.0
|
11.20%
|
|
Aegean
|
2,970,000
|
1,730,888
|
58.30%
|
14.80%
|
3,236.7
|
17.30%
|
|
Mediterranean
|
2,517,000
|
1,452,980
|
57.70%
|
12.40%
|
1,931.8
|
10.30%
|
|
Black Sea
|
1,933,000
|
877,944
|
45.40%
|
7.50%
|
1,332.8
|
7.10%
|
|
S.E. Anatolia
|
1,124,000
|
698,047
|
62.10%
|
6.00%
|
811.4
|
4.30%
|
|
East Anatolia
|
868,000
|
542,716
|
62.50%
|
4.60%
|
1,097.9
|
5.90%
|
|
Total
|
20,032,000
|
11,711,970
|
58.50%
|
100.00%
|
18,708.1
|
100.00%
|