Probabilistic assessment of earthquake insurance rates for buildings - Seismic Risk Analysis and Management of Civil Infrastructure Systems - page 794

calculation of the EADR k , the contributions of the intensity level V are not
taken into account since in the current earthquake insurance application in
Turkey, damage up to 2% of the replacement cost of buildings is considered
to be deductible and is not covered by the compulsory earthquake insur-
ance scheme.
The best estimate pure and commercially priced earthquake insurance
rates for reinforced concrete buildings are given in Table 29.4 for different
seismic zones of Turkey. In the same table the currently charged earthquake
insurance rates are also shown.
The pure insurance premium rates given in Table 29.4 consist of the con-
tributions of the expected annual damage from different levels of earthquake
hazard. Small intensity earthquakes produce less damage but occur more
frequently, whereas large intensity earthquakes result in major damage
although they occur rarely. The contributions of each intensity level to the
pure insurance premium rates are computed and presented in Table 29.5. As
observed in Table 29.5, the majority of the insurance premium rates are
due to small to moderate intensity earthquakes. This observation indicates
that the accurate determination of the occurrence probabilities of small
and moderate magnitude earthquakes warrants special attention in the

Table 29.4 Best estimate and the currently charged earthquake insurance rates
for reinforced concrete buildings

Best estimate
pure risk premium
rates (‰)

Best estimate commercially
priced earthquake
insurance rates (‰)

Currently charged
earthquake
insurance rates (‰)

Seismic
zone

I 6.12 10.21 2.20

II 4.09 6.81 1.55

III 2.70 4.50 0.83

IV 1.99 3.32 0.55

V 0.93 1.55 0.44

Table 29.5 Ratios of the contribution of each intensity level to the pure
insurance premium rates

Intensity (EMS-98)

Seismic zone IX VIII VII VI

I 0.08 0.17 0.28 0.47

II 0.10 0.18 0.41 0.31

III 0.09 0.22 0.40 0.29

IV 0.03 0.13 0.42 0.42

V 0 0.04 0.32 0.64

Source: Adapted from Deniz and Yucemen (2007).