The Turkish insurance sector's 2025 agenda includes important transformation plans such as those involving the Compulsory Disaster Insurance (ZAS), Ray Sigorta CEO Koray Erdogan said at a recent media briefing.
He stressed the importance of creating effective awareness to the reality of a possible massive Istanbul earthquake, according to a report by Insurance Gazette.
Time to act on expected 'Big One' in Istanbul
Turkish Environment Minister Murat Kurum earlier this month renewed his warning about a massive earthquake that seismologists predict is likely to hit Istanbul by 2030. In August 2024, he warned that 600,000 houses in the business metropolis had been identified as being at risk of collapsing in the event of a massive earthquake.
Referring to the risk, Mr Erdogan said, “It is time to take action on Istanbul, without wasting time.”
He said, “Work on the development of the current DASK (Turkish Catastrophe Insurance Pool), namely, on the Compulsory Disaster Insurance (ZAS) product, has been ongoing for a long time. However, I do not think that it (ZAS) is sufficient to increase penetration. Therefore, we should manage the risks of a possible Istanbul earthquake hand in hand with awareness regarding both compulsory insurance and home insurance. The most accurate solution for us is to grant tax advantages to policyholders. I think that further promotion of home and workplace insurance by our state is very important in minimising financial losses from the earthquake.”