Fitch Rating, one of the world’s largest international credit rating agencies, announced that the financial bill of the earthquakes affecting Turkey and Syria could exceed 4 billion dollars.
Fitch Ratings Turkey And SyriaHe made remarkable predictions in the report he published on the insurance losses of earthquakes affecting Turkey. While the report stated that the wreckage reports and the net loss have not been clarified yet, it was stated that the bill of the earthquake is expected to exceed 2 billion dollars and that the damage may even exceed 4 billion dollars.
Insurable losses are difficult to predict as the situation is evolving, but it seems likely to exceed $2 billion and reach over $4 billion.
The report also includes low insurance coverage insured losses due to “much lower” and about 1 billion dollars it was mentioned.
On the other hand, although in earthquake insurance compulsory Although the majority of the residences in the specified regions uninsured “could be” majority of insured losses can be compensated highlighted.
In addition, earthquake insurance is technically compulsory in Turkey, but is often not implemented in practice. As a result, many homes are not insured, particularly in many of the regions where low household incomes constrain affordability. The vast majority of insured claims will be covered by reinsurance, but the amount ceded is likely to be insignificant in the context of the global reinsurance market and will not have any impact on reinsurers’ ratings.