Insured losses from earthquakes in Turkey and Syria could reach $4 billion

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Insurable losses from earthquakes in Turkey and Syria could likely reach $4 billion or more. Such a preliminary forecast was made by the Fitch agency.

“However, the insured damage may be much lower, perhaps around $1 billion due to low insurance coverage in the affected regions,” – according to the forecast.

With regard to insurance payments in Turkey, a catastrophe insurance fund was created after the 1999 Izmit earthquake in Turkey to cover earthquake damage to residential buildings in cities. However, it does not cover human losses, liability claims or consequential damages such as business interruption.

In addition, earthquake insurance is technically mandatory in Turkey, but very often not implemented in practice. As a result, many residences are not insured, especially in many affected areas where families have low incomes.

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