The Turkish market is becoming more and more dependent on the brokers for the reinsurance of the earthquake risk
Because of the exposure to the earthquake risk, Turkey was among the first countries in the world in which an insurance pool against this risk was set up. However, due to the relatively high damages and the rather weak technical results recorded by the local companies, the reinsurance against the earthquake risk is facing with some difficulties.
“The renewals made in 2012 on the natural perils line were difficult because of the large-scale events in Asia and the global economic crisis. However, in 2013 these have unfolded very smoothly due to a previous year exempt of major catastrophes,” declared Menekse UCAROGLU, General Manager, Istanbul Underwriting Center.
According to the General Manager of IC, the Turkish market is still dependent on the commensurate treaties on the natural perils side, and the weak technical results of the local companies are making it more and more difficult to find coverage. Therefore, the local market became increasingly dependent on the reinsurance brokers.