The Insurance Association of Turkiye (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.
The agenda aims to ensure quake insurance coverage for all workplaces and households, according to local media reports.
TSB secretary general Ozgur Obali said, “We want all workplaces to be earthquake-ready with the right coverage and for earthquake coverage to be available in all households."
TSB’s Earthquake Insurance Reform Agenda is not just an insurance programme but also a comprehensive roadmap to increase public risk awareness and minimise the effects of quakes.
Proposed initiatives under the agenda include:
Emergency cash support through parametric insurance
Individuals with mandatory earthquake insurance will be provided TRY55,000 ($1,450) and SMEs TRY137,500 emergency cash support if an earthquake occurs and meets specified parameters.
Earthquake construction fund
A fund will be created to which premiums collected from earthquake insurance will be transferred. This fund will be used for mass housing construction by the public and private sectors. In this way, risk management will be provided and housing production will be supported.
Quake insurance coverage to expand
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.
Mr Obali said, “We are working to bring together the right insurance with the right coverage for citizens.”
He said that as the reforms address pre- and post-earthquake stages, both the impact area and the added value to be generated by the insurance sector will increase.”