Located on geologically active fault lines, Turkey is constantly face to face with an earthquake hazard. However, despite this serious risk, Turkey has still not developed the necessary insurance awareness for earthquake insurance. According to the updated statistics of TCIP (Turkish Catastrophic Insurance Pool, or DASK in Turkish), there are currently 9 million valid earthquake insurance policies with an overall insurance rate of 51.40 percent. Setting off from these facts, we can easily conclude that Turkey is not prepared for the risk of a potential major earthquake.
Earthquake is an unpredictable and unavoidable natural disaster. Nevertheless, we should not be scared of the earthquake itself but of being uninsured against it. It is possible to provide both material and immaterial assurance when necessary precautions are taken. In this respect, Compulsory Earthquake Insurance is of utmost importance in compensating for the material losses rapidly after an earthquake. However, this insurance has still not reached the expected penetration rates in Turkey.

According to the up-to-date statistics by TCIP, number of valid Compulsory Earthquake Insurance policies currently stands at 9 million, while overall insurance rate for this product is 51.4 percent. These figures prove that one of every two people is not under insurance protection against earthquakes in Turkey.

What is Compulsory Earthquake Insurance
TCIP stands for Turkish Catastrophic Insurance Pool (DASK - Doğal Afet Sigortaları Kurumu in Turkish). The institution began its operations in 2000, with the aim of issuing, enforcing and managing Compulsory Earthquake Insurance that covers for the material losses occurring after earthquakes to ensure that citizens can carry on with their daily lives. But why should we buy earthquake insurance; what are the benefits? 

This insurance provides financial coverage against losses in residences caused by earthquakes within the limits specified in the policy. Currently, people are obliged to buy this insurance in order to receive their title deeds and to be able to use utilities such as gas, electricity and water. In other words, if a residence is not covered by DASK insurance, owners/residences cannot conduct any transactions for that residence at public institutions.
With Compulsory Earthquake Insurance, TCIP aims to ensure that people can safely carry on with their daily lives following a potential earthquake disaster. TCIP offers coverages that are determined according to the annual increases in construction costs, and has been offering a coverage of 190 thousand TL for all types of buildings since 17 January 2018.

Insurance rates are high in regions that have experienced earthquakes
According to the reports by TCIP, Marmara Region is by far the number one region in terms of insurance rates; followed respectively by the Aegean Region, Central Anatolian Region, Mediterranean Region, Black Sea Region and Eastern Anatolia. Southeastern Anatolia is the last in this ranking.

Insurance rate is seen to be higher in cities that have already experienced earthquakes. First three cities with highest ranks are Düzce, Bolu and Yalova; which is a clear indication of this fact. Before the latest earthquake in Van, insurance rate was around 9 percent in the city. The recent Van Earthquake was a very significant test in terms of claims management and compensation of the losses of policyholders. Today, share of residences covered by Compulsory Earthquake Insurance stands at 43 percent in Van.

To give examples from other cities located on the earthquake zone; share of residences that have Compulsory Earthquake Insurance coverage stands at 61 percent in Erzincan, 68 percent in Bingöl, 59 percent in İstanbul, 61 percent in Kocaeli and 75 percent in Tekirdağ.

Advanced preparations for a potential earthquake in İstanbul
TCIP continues its activities to increase awareness about Compulsory Earthquake Insurance. In 2018, the officials had announced that a disaster call center model was established to address the questions and requests from particularly İstanbul, neighboring cities and even across Turkey, following a potential major earthquake in İstanbul. According to TCIP, they have the ability to pay approximately 18 billion TL for a single earthquake, including their own resources and reinsurance protection. Until now, the Pool has paid more than 186 million TL as compensation for earthquake claims.