Probabilistic assessment of earthquake insurance rates for buildings - Seismic Risk Analysis and Management of Civil Infrastructure Systems - page 780

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Probabilistic assessment of earthquake
insurance rates for buildings
M. S. YUCEMEN, Middle East Technical University, Turkey
DOI : 10.1533/9780857098986.5.787
Abstract : A simple probabilistic model is presented to obtain a realistic
estimate of earthquake insurance rates for buildings in Turkey. The
model integrates information on seismic hazard and information on
expected earthquake damage on engineering facilities in a systematic
way, yielding estimates of earthquake insurance rates. Earthquake
insurance rates are computed for reinforced concrete buildings
constructed in different seismic zones of Turkey with the purpose of
checking the validity of the currently charged earthquake insurance
rates. The actual implementation of earthquake insurance is also
discussed in this chapter. In this respect, an overview of the compulsory
earthquake insurance scheme is presented, and the organizational
structure and operational details of Turkish Catastrophic Insurance Pool
(TCIP) are described.
Key words : earthquake insurance, damage probability matrix, insurance
premium, seismic hazard, TCIP.
29.1 Introduction
In most countries, earthquake insurance programs are implemented with
the purpose of accumulating funds to cover post-disaster expenditure for
future earthquakes. The practice and regulations of earthquake insurance
vary from country to country. Below, brief descriptions for some countries,
where seismic hazard is signifi cant, are presented. The impact of the two
major earthquakes in 1999 in the Marmara region caused the government
of Turkey to establish the Turkish Catastrophe Insurance Pool (TCIP) in
September 2000 and earthquake insurance was made compulsory for dwell-
ings. The insurance system has fi ve tariff zones and also charges different
premium rates depending on the construction type (steel, reinforced con-
crete, masonry, and others). The rates charged by the insurance companies,
as specifi ed by TCIP, range from 5.50‰ to 0.44‰ of insured property.
The scheme has a deductible of 2% applied on the insured value of the
property.
The obligatory earthquake insurance system established in Turkey
is highly rated by national and international insurance authorities and
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