Earthquakes’ Financial Bill May Exceed $4 Billion

After the 7.7 and 7.6 earthquakes in Kahramanmaraş, the credit rating agency continued to work in the region. Fitch Ratingsshared an important report. The report was about the economic damage of the earthquake.

Although Fitch Ratings stated that it is difficult to estimate the insurable loss as the situation changes day by day in earthquakes affecting both Turkey and Syria, it shared the estimated numbers.

The loss is likely to reach or exceed $4 billion

Fitch, your insurable loss is likely that it will exceed 2 billion dollars; may even reach or exceed $4 million. says. However, it was stated that due to the low insurance coverage in the region, the insured loss could be lower, around $1 billion.

In addition, it is stated that a significant portion of the insured losses can be covered by reinsurance, while in most of the affected regions in Turkey and Syria. low insurance coverage recorded as probable.

Fitch drew attention to the Natural Catastrophe Insurance Pool (DASK), which was established after the 1999 Izmit earthquake, and said that it does not cover human losses, indirect losses, or impacts on businesses. In addition, although earthquake insurance is compulsory in Turkey, it is very not used often was also included in the report. For this reason, it was also reported that most of the residences in the affected areas do not have insurance.