68% - the average loss ratio of TARSIM
TARSIM was founded in 2005 and built as "a public-private partnership in Agricultural Insurance in Turkey". Its main aim is to provide the insurance coverage for such catastrophe risks like drought and frost that cannot be covered by a single insurance company but also to provide standardization in insurance contracts which cover the risks under the scope of the law and to encourage the participation in insurance. Although Turkey's rural population accounts for a large percentage of the total population, only 0.5% of agricultural areas in Turkey were insured before TARSIM came into being, although traditional agricultural insurance was available in the country since 1957.
In short, the TARSIM system consists of the Agricultural Insurance Pool and Management Company, which is responsible for managing all works and procedures of this pool. The state-subsidized voluntary agricultural insurance system is one of the best examples of cooperation between the state, private sector and non-governmental organizations with more than 1,590.690 ha of land insured in 2015, representing over 1,1 million policies. In comparison, in 2006, the first year in TARSIM's existence, some 12.330 policies were issued with 218.938 in the following year.
"Within the TARSIM system we have the governmental sector, the agricultural sector and the insurance market acting all together [...]", Mrs. Gamze US, Reinsurance and International Relations Director of TARSIM has told the attendees of IIF - Property Insurane in a Stormy Era Conference that took place in Munich, Germany on June 22nd-23rd, 2015.