DASK compulsory earthquake insurance rate is 59 percent

Stating that the devastating impact of the Kahramanmaraş-centered earthquakes has disrupted the insurance sector's conventional wisdom and shifted its paradigms, Levent Korkut, Chairman of the TOBB Insurance Agents Executive Committee, announced that the nationwide DASK compulsory earthquake insurance rate in Turkey is 59 percent.

Expressing that there are 20 million DASK compulsory earthquake insurance policies, Korkut said, “Our number of active policies is around 12 million. Only one in 4 residences has voluntary residential insurance outside of DASK. The insurance rate for compulsory traffic insurance is at the 80 percent level. One in every 4 vehicles has comprehensive insurance (kasko). In fire insurance, while the rate is high in large industrial enterprises, it is at the 50 percent level in SMEs. In other words, only one out of every two SMEs takes out insurance. In general terms, the insurance capacity utilization rate is at the 40 percent level.”

Stating that a change in the scope of DASK is on the agenda, Korkut said that especially by further expanding the fund pool and increasing the reinsurance capacity in potential disasters, DASK's payment power would be moved to much higher levels.

Stating that potential damages could be covered more quickly and effectively, Korkut said, “These funds will pave the way for providing long-term, affordable loans for the real sector in capital markets. It will ensure that citizens benefit from the protection of insurance more frequently and more extensively, and by increasing insurance awareness in society, it will serve to rapidly compensate for the economic loss in experienced disasters.”

Stating that the increase in natural disasters due to the effects of climate change has caused housing, fire, and workplace insurance to gain importance in Turkey, as it has all over the world, Korkut said, “The insurance rate increases after every earthquake, natural disaster, or fire. However, what is needed is for the insurance rate to increase permanently. The public, the business world, insurance companies, and we, the intermediaries, all have to make a serious effort together to spread insurance awareness to the grassroots.”

Stating that projects should be carried out starting from school ages to create insurance awareness, Korkut emphasized the importance of building robust SMEs by increasing the interest of SMEs in insurance.

INCENTIVE INCREASED INTEREST IN BES

Emphasizing that motor vehicle insurance (comprehensive, compulsory traffic, and voluntary liability) has also come to the fore with the rise in vehicle and damage repair costs, Korkut made the following assessment: "Interest in the Private Pension System (BES) is also increasing due to the state incentive rising to 30 percent and the increase in awareness in society. As a result of high health inflation and increasing health risks, supplementary health insurance, in particular, is also coming to the fore. In addition, there are significant increases in transport branch insurance due to the increase in imports, exports, and potential risks in transportation.” Stating that the biggest problem resulting from damages is the lack of coverage in policies, Korkut said, “Since this situation creates serious grievances, I would like to emphasize that good, fast, and complete service can be received in the event of damage with policies that do not have coverage deficiencies, obtained from insurance agents who are reachable 24/7.”