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TCIP aims to sell compulsory earthquake insurance coverage for all residences in Turkey

Turkish Catastrophic Insurance Pool (TCIP/DASK in Turkish) Underlining that the earth-
has managed to increase the number of residences with insur- quake experience has deep-
ance coverage above 9 million on the 20th anniversary of Mar- ly influenced the insurance
mara Earthquake, which occurred on 17 August 1999. Rate of rates of cities, Güngör add-
residences with earthquake insurance coverage has therefore ed as follows:
climbed up to 52 percent. “August 17 Marmara
Eartquake was a great
İsmet Güngör, Coordinator of TCIP, evaluated the performance destruction and suffer-
of compulsory earthquake insurance on the 20th anniversary ing for our country. TCIP
of Marmara Earthquake. He underlined that they wished for a was founded in 2000 with
Turkey that is 100 percent insured against earthquake. İsmet the aim of providing cov-
Güngör said: erage for financial losses
in residences that might
“TCIP has significantly increased the insurance rates thanks to be caused by earthquakes,
our efforts since 2000. After the Catastrophe Insurance Law and to ensure the continu-
-which came into force on 18 August 2012- obliged the own- ity of living circumstances after the earthquake. However, the
ership of a compulsory earthquake insurance policy for utility research indicates that during the 20 years that have passed after
transactions as well as mortgage and title deed transactions, in- this major earthquake, the risk of earthquake has fallen behind
surance rates have increased considerably. Number of residences other risks according to the risk perception of individuals. We
with earthquake insurance was around 500 thousand in 1999, have a new generation that has not experienced this earthquake.
which has exceeded 9 million today. After the issuance of this Today, our mission is to tell them about the earthquakes and
legal obligation, most of the compulsory earthquake insurance necessary precautions before they suffer from a similar fate.
policyholders have met with insurance for the first time in their
lives.” Nearly 200 million TL paid in claims for 20 years

One out of two people believes they live in a low-risk zone Stating that 651 damage-causing earthquakes have occurred
since the foundation of TCIP, Güngör said: “We have paid nearly
According to the recent perception research conducted by TCIP 200 million TL for small, medium and large-scale losses caused
using survey and in-depth interview methods, one out of two peo- by those earthquakes in residences that have compulsory earth-
ple defines the region of their houses as a secure zone. Seven quake coverage. After Van Earthquake, we started paying for
out of ten people believe that their homes are solid even if they claims in a very short time and paid a total of 135 million TL.”
haven’t had it checked.
TCIP’s claims paying ability increased to 20 billion TL
Stating that they reached more than 9 million residences and
managed to get one of two residences under insurance coverage, Being monitored closely on international platforms, TCIP is re-
Güngör said: garded as a model for other countries due to number of its poli-
cies, achievements in increasing the insurance rate, its ability to
“We have gained half of the residence owners. Now is the time offer insurance coverage with low premiums, its high claims-pay-
to gain the other half. Increasing the number of insured resi- ing ability that includes reinsurance and catastrophe bond, and
dences is also in the 11th Development Plan. The results of our its successful business model as a public-private partnership.
recent research indicate that home owners that have not bought TCIP’s claims-paying ability against a major earthquake has
compulsory earthquake insurance prefer to ignore the risk rath- reached 20 billion TL thanks to its accumulated reserves and re-
er than managing it. Half of the home owners believe that they insurance capacity. Expressing that TCIP’s achievements make
are safe, and this belief is not grounded on any information or them proud, Güngör said: “Our projects that aim to manage
precaution. They do not want to face the risks. The idea that our pre-earthquake operations and post-earthquake claims pro-
nothing would happen to them is dominant. We should tell them cess have not only yielded successful results in Turkey, but also
about the earthquake risks, show them that they are not helpless received a great deal of attention from many other countries.
against it, and persuade them to buy earthquake insurance and We are proud to be sharing our experiences about compulsory
take necessary precautions. Because life will continue after the earthquake insurance on behalf of both our organization and our
earthquake, and insurance will have great importance in turning country.”
our lives back to normal much faster.”
TCIP’s works and projects in Turkey have become a model for
We see that cities that have experienced the earthquake have many countries, particularly for countries like Pakistan, Iran,
the highest rates of compulsory earthquake insurance ownership. South Korea, Kazakhstan, Azerbaijan, Uzbekistan, Mongolia,
Düzce, Yalova and Sakarya have a rate over 80 percent; and and Romania; and the organization has shared their experiences
Tekirdağ and Muğla are at around 70 percent. As to the big and details about compulsory earthquake insurance in several
metropolises, earthquake Insurance ownership rate reached 62 countries including the United Kingdom, Japan, Greece, Italy,
percent in İstanbul, 57 percent in İzmir, 55 percent in Ankara, Philippines, China, Mexico, Macedonia, Jordan, Morocco, Alba-
54 percent in Antalya. nia, Indonesia, Romania, Kuwait and Azerbaijan.