Due to the increase in construction costs, a new era is being inaugurated in the coverage of the Insurance Institution of Natural Disasters (DASK). TCIP coverage, which currently stands at 1,508 TL per square meter, will be increased to 3,016 TL, and the insured will be offered two alternatives.
NEW OPTION FOR HIGH LIMIT REQUESTS
At the same time, the insured who wants greater coverage may continue to receive greater coverage from insurers in addition to the coverage offered by TCIP, as is the case now. The general manager of Türk Reasürans, Selva Eren, answered SABAH’s questions about this new regulation, which was the first in the history of the TCIP. Eren said: “There is a square meter price determined by the Ministry of Environment and Urbanization every year. This value is 1,508 TL. This value is 1,508 TL. For a 100 square meter house, an average of 173 TL is pays, and in return, TL 150,000 is covered. Our citizens, In today’s conditions, he doesn’t think this guarantee amount is sufficient.”
640 THOUSAND LIRA GUARANTEE
Stating that this figure will be revised mid-year based on need, with the change to be made to the Mandatory Earthquake Insurance Rate and Notice of Instruction by SEDDK on the recommendation of the TCIP, Eren said: “Doubles the value of the coverage it provides per square meter to 3,016 TL. The coverage we will give for a m2 house will be approximately 300 thousand lire. You know, we guarantee a maximum of 212 m2. With the move to be made, we will be providing a guarantee of approximately 640 thousand lire for a 212 m2 house. Depending on economic developments, coverage amounts will be revised in the coming periods so that our policyholders do not suffer unfairly. It is one of our top priorities,” he said.
WE MUST DO THANK YOU
Stating that many studies remain aligned with the objective of insuring all homes in Turkey and 100% insurance coverage, Eren said that one of them is the transition to the surcharge system applied in mandatory insurance. Selva Eren also said the following about this new functionality: “A surcharge will be applied to policies that are not renewed within the renewal period. It will be ensured that policies made especially for subscription transactions and that have just entered will be renewed without interruption, and that policies are made without delay for new homes that have not yet entered the system. a certain awareness and is seen as a necessity.”
OTHER NATURAL DISASTERS IN 2023
Selva Eren said: “What other types of natural disasters can be included in the TCIP and turning the Compulsory Earthquake Insurance, which the TCIP provides as a financial guarantee against earthquakes, into ‘Disaster Insurance’ is among our top priorities.” integrating other natural disasters, especially natural disasters, into mandatory earthquake insurance. We aim to complete our work in early 2023,” he said.
DOMESTIC SOFTWARE READY
Stating that, like Türk Reasürans, they feel a responsibility towards the quality of management of the catastrophic risks expected by the industry and feel that they should specialize in this field, Eren said: “We aimed to bring this competence center to our sector by establishing a team that has as much knowledge as the world’s examples. This platform, which we call CATMOD, is prepared by specialists from our country. “We aimed to produce the most accurate results through equations and methods specific to our country. with which we have been working for a year and a half, in May. We intend to use our platform in our 2023 renewals and make it available to our industry stakeholders,” he said.
WE INCREASED OUR PAYMENT STRENGTH TO 46 BILLION
Selva Eren stated that they were doing a modeling on the great earthquake that awaits Istanbul and continued as follows: from the citizens and the additional reinsurance received. What have we done? Firstly, we managed to increase the fund we had received from 10.8 billion TL to 18 billion TL in a short time like 1.5 years, with the effective management of our TCIP to 46 billion TL by purchasing additional reinsurance capacity as needed. In addition, we increased the number of TCIP policies we took out from 9.5 million to 10.7 million in a year and a half.”
WE ARE GOING TO 500 MILLION PROFITS IN 2023
Stating that they achieved numbers above their targets in profitability and premium production in the 3rd year of their creation, Eren said, “We closed this year very well. We produced 1.8 billion TL of premiums. As a result, we made a profit of 290 million of TL. While our shares were 900 million TL at the end of 2021, today it has surpassed 1 billion TL as of today. Our asset size has reached 3 billion TL. Our premium production in Q1 2022 is 1 billion TL. We ended the first quarter with a profit, in relation to our sector in general. Above all, in line with our founding purpose and mission, our company that operates in our country “We provide reinsurance support to 28 Insurers and Institutions in total . We are exporting reinsurance to 60 countries supporting 21 foreign insurers and reinsurers residing in 16 countries abroad.” (Morning)