Türkiye is expected to suffer economic losses of around $300bn in the event of a major earthquake striking the country's commercial hub, Istanbul, the president of the Insurance Association of Türkiye (TSB), Mr Ugur Gulen, said.
At the TSB’s 71st ordinary general assembly in Istanbul on 8 May, he said approximately $25-30bn of this loss would be borne by the insurance sector, according to local media reports.
TSB has drawn up an Earthquake Insurance Reform Agenda to strengthen the country’s readiness to face quake risks after the devastating 6 February earthquakes in 2023.
Referring to the agenda, Mr Gulen said, "With this study, we prepare for multilateral and multidimensional reform proposals in multiple areas. We start by including earthquake risk in all insurance policies with a fixed and specially prepared scope; increasing insurance; creating alternative funds; increasing the information levels of distribution channels; raising awareness, and focusing on the insured and sectoral regulations.”
The agenda aims to ensure that there is quake insurance coverage for all workplaces and households. In addition, earthquake will be defined as a separate insurance branch and made mandatory. Earthquake coverage will be added to all insurance products, including motor and home insurance plans.
Officials and insurers are concerned about a likely massive earthquake that would hit Istanbul. The sentiment is that such a quake is inevitable given the length of time that has transpired since 17 August 1999 when the Mw 7.4 Marmara earthquake struck Izmit, around 100km east of Istanbul. It killed over 18,000 people.