Preparations to transform the Turkish Compulsory Insurance Pool (TCIP) from covering compulsory earthquake insurance to providing mandatory disaster insurance have been completed, except for legislation to be enacted by Parliament.
Turk Reasurans general manager Selva Eren said, “We have actually been ready in technical terms since last year. We are also ready in terms of integration with insurance companies.” Ms Eren said that Turk Re, the technical operator of the TCIP, is waiting for the necessary legislation to be tabled and passed by the Grand National Assembly, reported Insurance Media.
She added, “If the proposed law is passed, villages will fall within the scope of compulsory disaster insurance. Forest fires or floods occur around villages and rural houses are affected. These will also be added to compulsory disaster insurance.”
Quake insurance coverage
Giving an update on Turkiye’s compulsory earthquake insurance scheme that covers residential property, Ms Eren said that the coverage rate was 56% across the country. She said the Marmara Region has the highest compulsory earthquake insurance rate at 64% in Türkiye with approximately 4.5m policies in force. The number of policies across Türkiye totals around 11.3m.
Stating that the insurance rate was 63% in Istanbul and 58% in Bursa, she added, “Of course, these rates are not enough. Our goal is to reach 100%.”
The TCIP was founded in 2000 as the public institution responsible for providing compulsory earthquake insurance for residential buildings in urban areas. Its establishment followed the devastating magnitude-7.4 Marmara Earthquake in 1999.