Perils estimates insurance losses from Turkey quakes
Perils estimates insurance losses from Turkey quakes
27 March 2023
Swiss-based catastrophe data company Perils has released its initial estimate for insured losses from last month’s devastating earthquakes in Turkey and Syria.
The earthquake sequence saw a series of high-magnitude tremors hit the region on February 6, causing massive destruction and a death toll currently at 56,900, with an additional 130,000 severely injured and 2.4 million displaced.
Perils places the estimated insured loss at TRY 65.4 billion ($5.15 billion). This figure only includes losses relating to the property line of business in Turkey and does not include losses in Syria.
The analysis says the recorded loss represents the costliest catastrophe event in the country’s history, with more than 160,000 buildings in Turkey destroyed, damaged or in need of demolition.
As reported earlier, insured losses are expected to be taken up by international reinsurers as well as the Turkish Catastrophe Insurance Pool (TCIP), which provides compulsory earthquake cover for residential property owners.
Perils CEO Luzi Hitz says that despite legally mandated insurance cover, many Turkish homes have limited financial protection.
“Although the insurance industry in Turkey offers protection for the financial consequences of such events, the take-up rate remains low, or the coverage limits purchased are far below reconstruction costs,” he said.
“Earthquake insurance is not only a challenge in Turkey, but also in other regions exposed to high seismic activity such as Japan or California, where insurance penetration for the peril remains low.”
A recent study from Istanbul’s Koc University places the overall economic loss from the earthquake at between $US70 billion ($105.44 billion) and $US87 billion ($131.04 billion).
