The Insurance and Private Pension Regulation and Supervision Authority (SEDDK), the Turkish Insurance Association (TSB), and the senior management of DASK (Turkish Natural Disaster Insurance Pool) have held a series of meetings on the anniversary of the massive earthquakes that occurred on 6 February 2023, Middle East Insurance Review wrote.

The meeting discussed the steps taken to strengthen the economic and commercial structure of the region after the earthquake, the role of the insurance sector in post-disaster recovery, and efforts to increase the resilience of the business world.

According to the SEDDK President Davut Mentes, the experiences gained after 6 February have opened the doors to a new era in insurance, including plans to expand coverage of DASK from earthquakes to all natural disasters. He noted that the work on the Compulsory Disaster Insurance (ZAS), which will encompass all Nat CATs such as floods, landslides, and forest fires under a single policy, is nearing completion. ZAS is planned to be implemented in 2026.

The TSB Vice President Ahmet Yasar said that the 6 February disaster caused over USD 100 billion in direct economic losses. That the insurance sector could only compensate for 5-6% of this damage clearly revealed the "protection gap" in Turkiye. "The biggest disaster risk in Turkiye is not earthquakes, but lack of insurance. What restarts life after disasters is not only physical reconstruction, but also the uninterrupted continuation of the economic order", he emphasized.

DASK Secretary General Balkir Demirkan stated that the pool paid claims totaled TRY 39 billion (USD 894 million) to more than 519,000 residential properties damaged in the Kahramanmaras Earthquake. He added that issues such as accurate square meter declarations and policy continuity will be covered by legal regulations to increase the penetration rate.

DASK data reveal the regional distribution of compulsory earthquake insurance coverage rates. Across Turkiye, 11,686,235 out of a total of 20,032,000 residential units are covered by mandatory earthquake insurance. This represents a nationwide insurance coverage rate of 58.50%. Region-wise, the Marmara Region stands out with a 65.40% coverage rate. The Marmara Region also accounts for 38.30% of total policies and 43.90% of total premium production.

Istanbul, which is in the Marmara Region and is Turkiye’s most important economic hub, has an insurance coverage rate of 63.40%, the source added.