The earthquake risk in Turkey
The geographic position of Turkey makes of it one of the most seismic zones in the world. Approximately 20 000 lives have been claimed, 70 000 buildings damaged and 20 000 destroyed by 5 earthquakes that have shaken Turkey in the course of the last ten years. During this period, the costs of building damage amount to 20 billion USD.
The August 17, 1999 earthquake alone (7.4 on the Richter scale), which hit the sea side area of Marmara, claimed the lives of more than 17 000 people.
The insurance of earthquakes risk was made compulsory on November 25, 1999. The TCIP (Turkish Catastrophic Insurance Pool), is a pool designed for catastrophe insurance. It benefits from the government support. It is the company Milli Re that is entrusted with the technical management of TCIP over a five-year period as from August 8, 2005.
It is worth noting that despite the obligation imposed by the law, numerous dwellings remain uncovered. The average cover rate of this risk does not exceed 16% in Turkey. With 34% in Bolu, 33.9% in Yalova and 29.8% in Istanbul.
Premiums and insured values
in USD| 2001 | 2002 | 2003 | |
|---|---|---|---|
Number of insurance policies | 2 444 512 | 2 127 537 | 2 022 502 |
Number of residences | 16 235 786 | 12 988 665 | 12 988 665 |
Cover rate | 15.1% | 16.4% | 15.6% |
Insured values | 24 892 363 722 | 25 870 446 717 | 36 621 102 103 |
Written premiums | 40 609 635 | 74 906 248 | 61 087 851 |
Average insured values per policy | 10 183 | 12 160 | 18 107 |
Losses
in USD| Number of earthquakes | Occurred losses | Total paid losses | |
|---|---|---|---|
| 2000 | 1 | 6 | 34 315 |
| 2001 | 17 | 338 | 88 509 |
| 2002 | 21 | 1558 | 1 374 822 |
| 2003 | 20 | 2498 | 3 671 978 |
| Total | 59 | 4400 | 5 169 624 |
Paid losses by the TCIP in 2003
in USD| Date of loss | Location | Magnitude (On the Richter scale) | Paid losses |
|---|---|---|---|
| 27/01/2003 | Tunceli Pülümür | 6.5 | 207 707 |
| 21/02/2003 | Afyon - Merkez | 3.6 | 6 553 |
| 16/03/2003 | Hakkari - Semdinli | 4.8 | 31 787 |
| 10/04/2003 | Izmir - Urla | 5.6 | 1 334 109 |
| 18/04/2003 | Izmir - Urla | 4.8 | 34 224 |
| 01/05/2003 | Bingöl - Merkez | 6.4 | 2 014 923 |
| 04/05/2003 | Izmir - Urla | 4.4 | 2 047 |
| 21/05/2003 | Bingöl - Genç | 4.5 | 5 953 |
| 09/06/2003 | Balikesir - Bandirma | 5.1 | 824 |
| 06/07/2003 | Canakkale - Gelibolu | 5.3 | 7 370 |
| 26/07/2003 | Denizli - Buldan | 5.6 | 15 404 |
| 31/07/2003 | Afyon - Sultandagi | 4.4 | 964 |
| 03/10/2003 | Eskisehir - Merkez | 4.2 | 5 777 |
| 24/11/2003 | Izmir - Merkez | 3.5 | 1 051 |
| 16/12/2003 | Izmir - Dikili | 4.6 | 1 408 |
