Turkey: TCIP paid throughout 20 years a total cost of TRY 783.2 million for earthquake losses

4 March 2021 — Daniela GHETU
The Turkish Natural Catastrophe Insurance Pool - TCIP has paid a total of TRY 783.2 million (~ EUR 200 million considering the exchange rate variation) throughout its 20 years of activity. Claims paid in 2020, amounted to TRY 548.7 million, impacted by two major earthquakes that hit Turkey.

In 2020 Turkey was hit by two major earthquakes, each of them followed by hundreds of aftershocks.

  • 24 Jan 2020 17:55:16 GMT - Sivrice, Elazig Province - 6.7M - serious damage within 40 km of the epicenter, including the cities of Elazig and Malatya; 19 towns and over 200 villages severily impacted. Just in the two cities, 87 multistory buildings collapsed with another 1,287 being so damaged that they will have to be demolished. Thousands of other buildings outside the cities were seriously affected. All buildings in 25 of the villages are reported to be destroyed.
  • 30 Oct 2020 1:51 pm Aegean Sea, 17 km NE of Karlovasi, Samos, North Aegean, Greece - Turkish city Izmir was heavily affected by the earthquake, dozens of buildings were either damaged or completely collapsed; 117 people are known to have died in Turkey's Izmir Province, with 1,034 more injured, a toll that qualifies the event as the deadliest earthquake in the 2020; according to local sources, about 15,000 people lost their homes.
In a speech made on the occasion of the March1 - 7 "Earthquake Week", TCIP Coordinator Erdal TURGUT stated that TCIP paid about TRY 24 million after the Elazig quake, while for the Izmir one about 30% of the claims were finalized, amounting roughly to TRY 266 million. He also said, quoted by the local press, that the two earthquakes experienced in 2020 led to an increased awareness in regards of this risk. "We are working to ensure that all residences within our scope have Compulsory Earthquake Insurance coverage. It is pleasing for us to see an increase in policy production after the campaign we launched for this purpose. "

According to the TCIP official statistics, the Aegean and Easter Anatolian regions have recorded in the last two decades the largest number of seismic events and account together for over 92% of the total claims paid throughout the period. On the other hand, sums paid in 2020 (TRY 548.7 million) account for about 70% of the total payments made in the whole TCIP history.

Currently about 56% of the Turkish housing units have earthquake insurance coverage, the ratio ranging across different region from 44.8% in the Karadeniz Region, to 68% in the Marmara region.

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