Premiums charged in the Compulsory Earthquake Insurance scheme are to be increased monthly, following new regulations issued by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK).
The rate of increase is to be calculated according to the monthly rate of change in the Domestic Producer Price Index (DPPI) with 2003 as the base year (2003= base of 100) announced by the Turkish Statistical Institute (TUIK).
When the TUIK data shows the DPPI rate of change is below zero, the rate of increase for compulsory earthquake insurance premiums will be accepted as zero.
The SEDDK also increased the minimum premium amounts determined for compulsory earthquake insurance.
At the same time, the maximum coverage amount for compulsory earthquake insurance has been increased to TRY1,704,162 from TRY1,272,000.
The construction cost per sq m that forms the basis for the calculation of the insured amount has been increased from TRY6,000 to TRY8,039 for reinforced concrete houses and from TRY4,000 to TRY5,359 for residential property built with other materials.
Although the earthquake insurance scheme is compulsory, the coverage rate is only 56% across the quake-prone country.
The changes were announced through a communiqué that was published in the official gazette last week. The communiqué came into force on 8 March 2025.