Known in Turkish by the acronym DASK, the Turkish Natural Catastrophe Insurance Pool (TCIP) was established in 2000 in response to the 1999 Izmit earthquake. Since its inception, TCIP has worked diligently to restore a sense of normalcy in the wake of natural disasters. The year 2023 was challenging for all of Türkiye, as the catastrophic earthquakes leaving deep, partially unhealed wounds in the nation’s soul. Despite the profound shock this cataclysmic event had on the entire country, TCIP mustered all of its strength, resources, and expertise to respond to the needs of those affected, devising several innovative solutions to support the recovery process.
In line with our maxim “earthquakes will pass and life will go on,” our organization supports everyday people on their road to recovery after earthquakes. TCIP has been responsible for issuing and managing Compulsory Earthquake Insurance policies since its establishment. In a country prone to earthquakes like Türkiye, TCIP is dedicated to encouraging all residents to prepare for such events, thereby ensuring a safer future for the entire nation.
We prioritized paying out claims to policyholders without undue delay. The groundwork laid prior to the disaster ensured that we were both operationally and financially prepared to manage the disaster as it unfolded. The entirety of our Ankara-based personnel, in addition to several teams from Istanbul, came together at Ankara’s Emergency Management Center to begin operations immediately following the earthquake. Using damage appraisals made by Türkiye’s Ministry of Environment, Urbanisation and Climate Change, we processed claims for properties that had been destroyed, that required immediate demolition, or that suffered severe damage, issuing the first damage payments within twenty-four hours of the first earthquake—well before receiving notifications from policyholders. The TCIP Truck and a damage assessment unit were dispatched to the affected areas the same day to expedite operations and portable container officers were set up to provide earthquake victims access to personalized assistance.
In response to this catastrophic disaster, we implemented new procedures to alleviate the burdens on those affected by the earthquakes. For the first time in its history, TCIP introduced an advance payment program that enabled disaster victims to access funds immediately upon filing a damage claim without having to wait for the assessment process to conclude. We also introduced new provisions for lightly damaged properties, which comprised a significant portion of claims filed. Under this program, we paid fifteen percent of the insured amount to policyholders without requiring any deductible on their part. We also offered those participating in the program the option to have a certified valuer revaluate their properties upon request. For mortgaged properties, the Banks Association of Türkiye created procedures allowing for collective processing, thereby eliminating the need for claimants to file individual consent forms and allowing policyholders to receive up to fifty thousand TRY in damage compensation. As time passed, we identified policyholders who had not received the payments to which they were entitled because of incorrect contact information. To remedy this, we coordinated with Türkiye’s Digital Transformation Office and e-government administrators to add a TCIP payment code service to Türkiye’s official e-government portal.
We settled approximately 600,000 claims verified by Türkiye’s Ministry of Environment, Urbanisation and Climate Change within four months of the earthquakes. We paid a total of 35 billion TRY in compensation to policyholders by January 24 and continue to process and settle incoming claims as quickly and equitably as possible.
As we continue to support those affected by the most recent earthquakes in their recovery, we remain committed to securing a bright future for all of Türkiye through engaging and innovative projects. Since 2014, for instance, the Earthquake-Resistant Building Design Competition has provided civil engineering and architecture students the opportunity to gain hands-on experience in designing and modeling earthquake-resistant buildings. This competition similarly helps to raise awareness about earthquake engineering, encourages students to specialize in this field, and enhances society’s collective understanding of earthquake-resistant structures. This year’s finale will take place at Hasan Kalyoncu University in Gaziantep, one of Anatolia’s most beautiful cities.
We also updated Compulsory Earthquake Insurance plans. Effective 1 January 2024, all policies will be calculated using the latest valuation assessments and will include inflation protection provisions. Coverage amounts will be adjusted monthly in accordance with the inflation rate and will not require any additional premium payments.
In response to the increasing frequency and severity of natural events in recent decades, TCIP has taken the necessary steps to fulfill its responsibility of offering effective disaster protection to all homeowners in Türkiye. This includes expanding coverage to encompass all forms of natural disasters, with a particular focus on floods. Compulsory Disaster Insurance will be introduced in July, providing homeowners with complete coverage for all natural disasters under a single policy.
We encourage all homeowners to insure their properties through TCIP, reinstate any lapsed policies, and update existing coverage plans to ensure that they are financially protected from all forms of natural disasters in the upcoming year.