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M. S
emih
YU
CE
ME
N
Dir
ecto
r, E
arth
qu
ake
En
gin
eeri
ng
Res
earc
h C
ente
rD
epar
tmen
t o
f C
ivil
En
gin
eeri
ng
, M
idd
le E
ast
Tec
hn
ical
Un
iver
sity
An
kara
, 065
31 T
UR
KE
Ye-
mai
l: y
uce
men
@m
etu
.ed
u.t
r
OE
CD
Co
nfe
ren
ce o
n
Fin
anci
al M
anag
emen
t o
f L
arg
e S
cale
Cat
astr
op
hes
26-2
7 F
ebru
ary
2007
Hyd
erab
ad, I
ND
IA
TUR
KIS
H C
ATA
STR
OP
HE
INSU
RA
NC
E P
OO
L (T
CIP
): P
AST
EX
PER
IEN
CE
Out
line
Turk
ish
Cata
stro
phe
Insu
ranc
e Po
ol
Back
grou
nd In
form
atio
n an
d H
isto
ry
Obj
ecti
ves
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
Fact
s an
d N
umbe
rs
Conc
ludi
ng C
omm
ents
Bas
ed o
n Pa
st E
xper
ienc
e
Turk
ish
Cata
stro
phe
Insu
ranc
e Po
ol (
TCIP
)?
Turk
ish
Cata
stro
phe
Insu
ranc
e Po
ol (
TCIP
)is
a n
on-p
rofi
t pu
blic
ent
ity
affi
liate
d w
ith
the
Min
istr
y of
Sta
te,
to w
hom
th
e U
nder
-sec
reta
riat
of
Tr
easu
ry
repo
rts.
TC
IP
was
es
tabl
ishe
d by
th
e D
ecre
e La
w
587
(Dat
e:
27.1
2.19
99)
pert
aini
ng
to
the
Com
puls
ory
Eart
hqua
ke
Insu
ranc
e.
Acc
ordi
ng
to
the
decr
ee
law
ea
rthq
uake
in
sura
nce
was
m
ade
com
puls
ory
for
all
regi
ster
ed
resi
dent
ial
build
ings
w
ithi
n th
e m
unic
ipal
ity
boun
dari
es.
The
fina
ncia
l re
sour
ces
of T
ClP
are
com
pose
d of
pre
miu
m
reve
nues
, re
insu
ranc
e co
vera
ge
and
the
supp
lem
enta
ry
fina
ncin
g ob
tain
ed e
xter
nally
, w
hen
need
ed.
TCIP
•In
Turk
ey,
the
Stat
e us
ed t
o ha
ve a
lega
l obl
igat
ion
(Dis
aste
r
Law
, N
o.72
69)
to f
und
the
cost
s of
rec
onst
ruct
ing
build
ings
afte
r an
ear
thqu
ake.
Thi
s re
spon
sibi
lity
of t
he S
tate
bro
ught
an u
npla
nned
bur
den
on t
he n
atio
nal
econ
omy
and
on t
he
alre
ady
limit
ed c
entr
al b
udge
t in
the
cas
e of
cat
astr
ophi
c
seis
mic
eve
nts.
•The
tw
o m
ajor
ear
thqu
akes
in
Turk
ey o
n 17
Aug
ust
and
12
Nov
embe
r 19
99 b
oth
occu
rred
in
or n
ear
urba
n se
ttle
men
ts
and
caus
ed w
ides
prea
d de
stru
ctio
n of
the
bui
ldin
g st
ock.
TCIP
•A
ccor
ding
ly
the
Gov
ernm
ent
of
Turk
ey
has
deci
ded
to
enfo
rce
the
eart
hqua
ke i
nsur
ance
on
the
nati
onw
ide
basi
s
wit
h th
e so
le p
urpo
se o
f pr
ivat
izin
g th
e po
tent
ial
risk
by
offe
ring
insu
ranc
e th
roug
h th
e Tu
rkis
h Ca
tast
roph
eIn
sura
nce
Pool
(TC
IP)
and
then
exp
orti
ng t
he m
ajor
par
t of
thi
s ri
sk t
o
the
inte
rnat
iona
l rei
nsur
ance
and
cap
ital
mar
kets
.
•Th
eid
ea o
f a
nati
on-w
ide
oblig
ator
y ea
rthq
uake
ins
uran
ce
enfo
rcem
ent,
was
fir
st p
ut f
orw
ard
in 1
978
by t
he M
inis
try
of
Reco
nstr
ucti
on a
nd S
ettl
emen
t.
TCIP
•A
ltho
ugh
the
mai
n ai
m w
as t
o re
duce
gov
ernm
ent’
s fi
scal
ex
posu
re,
it w
as a
lso
inte
nded
to
enco
urag
e ri
sk m
itig
atio
n an
d sa
fer
cons
truc
tion
pra
ctic
es.
•To
achi
eve
thes
e pu
rpos
es
all
regi
ster
ed
resi
dent
ial
dwel
lings
tha
t ar
e lo
cate
d w
ithi
n m
unic
ipal
ity
boun
dari
es a
re
requ
ired
to
be
in
th
e co
mpu
lsor
y ea
rthq
uake
in
sura
nce
cove
rage
.
•Ini
tial
ly f
unde
d by
the
Wor
ld B
ank,
TCI
P w
as f
ound
ed o
n 08
.08.
2000
and
the
TCI
P pr
ogra
m b
ecam
e ef
fect
ive
sinc
e th
en.
TCIP
•TC
IP
was
es
tabl
ishe
d
unde
r th
e su
perv
isio
n of
U
nder
-se
cret
aria
t of
Tre
asur
yto
off
er s
uch
insu
ranc
e at
aff
orda
ble
prem
ium
s.
•O
rigi
nal
aim
of
TCIP
was
to
prov
ide
a m
ulti
-per
il co
vera
ge,
but
curr
entl
y it
pr
ovid
eson
ly
com
puls
ory
eart
hqua
ke
insu
ranc
eco
vera
ge.
•O
pera
tion
al m
anag
emen
tha
s be
en c
ontr
acte
d ou
t to
lead
ing
rein
sura
nce
com
pani
es in
Tur
key.
Mill
i Rei
nsur
ance
Com
pany
for
the
firs
t 5
year
s.
Gar
anti
Insu
ranc
e Co
mpa
nysi
nce
8 A
ugus
t 2
005.TC
IP
The
prim
ary
obje
ctiv
es
of
TClP
ca
n be
su
mm
ariz
ed
as
follo
ws:
Obj
ecti
ves
To p
rovi
de i
nsur
ance
cov
erag
efo
r al
l th
e dw
ellin
gs w
ithi
n
the
scop
e of
the
TCI
P po
licie
s ag
ains
t ea
rthq
uake
ris
k in
retu
rn f
or a
pre
miu
m;
To
ensu
re
risk
sh
arin
gw
ithi
n th
e co
untr
y an
d al
so
to
dist
ribu
te t
he f
inan
cial
lia
bilit
ies
caus
ed b
y ea
rthq
uake
son
toth
e in
tern
atio
nal r
eins
uran
ce m
arke
ts;
Obj
ecti
ves
To
mit
igat
e th
e po
ssib
le
fina
ncia
l bu
rden
s on
th
e go
vern
men
tdu
e to
ear
thqu
akes
(es
peci
ally
con
stru
ctio
n of
ne
w d
wel
lings
aft
er a
cat
astr
ophe
);
To u
tiliz
e th
e in
sura
nce
syst
em a
s a
mea
ns t
o en
cour
age
the
cons
truc
tion
of
eart
hqua
ke-r
esis
tant
str
uctu
res;
To e
nsur
e th
e ac
cum
ulat
ion
of l
ong
term
res
erve
sto
fi
nanc
e th
e fu
ture
ear
thqu
ake
loss
es;
To
cont
ribu
te
to
the
deve
lopm
ent
of
insu
ranc
e
cons
ciou
snes
sin
the
pub
lic.
Org
aniz
atio
n
RE
INS
UR
AN
CE
C
OM
PA
NIE
SPO
OL
MA
NA
GE
ME
NT
C
OM
PA
NY
GA
RA
NT
I IN
SU
RA
NC
E
BO
AR
D
OF
DIR
EC
TO
RS CL
AIM
A
DJU
ST
ER
S
IT P
RO
VID
ER
S A
ND
AD
VE
RT
ISM
EN
T
AN
D P
R C
OM
PA
NIE
S
PO
LIC
Y D
IST
RIB
UT
OR
S(I
NS
UR
AN
CE
C
OM
PA
NIE
S A
ND
A
GE
NC
IES
)
UN
DE
RS
EC
RE
TA
RIA
T
OF
TR
EA
SU
RY
GE
NE
RA
L D
IRE
CT
OR
AT
E
OF
INS
UR
AN
CE
TURK
ISH
CA
TAST
ROPH
E IN
SURA
NCE
PO
OL
ORG
AN
IZAT
ION
AL
STRU
CTU
RE
TC
IP h
as n
opu
blic
em
ploy
ees
24 In
sura
nce
Com
pani
es
13.5
00 T
heir
Age
ncie
s
The
man
agem
ent
of T
CIP
is p
erfo
rmed
by
the
TCIP
Boa
rd
of D
irec
tors
com
pose
d of
the
fol
low
ing
seve
nm
embe
rs:
Repr
esen
tati
ve o
f Pr
ime
Min
istr
yR
epre
sen
tati
ve o
f U
nder
-sec
reta
riat
of
Trea
sury
Rep
rese
nta
tive
of
Min
istr
y of
Pub
lic W
orks
and
Se
ttle
men
t
Rep
rese
nta
tive
of
Capi
tal M
arke
ts B
oard
Rep
rese
nta
tive
of
th
e A
sso
ciat
ion
of
the
Insu
ran
ce
and
Rei
nsu
ran
ce C
om
pan
ies
of
Tu
rkey
Ope
rati
onal
Man
ager
Eart
hqua
ke S
cien
tist
Org
aniz
atio
n
Th
e C
om
pu
lso
ry E
arth
qu
ake
Insu
ran
ce
In g
ener
al t
erm
s, t
he C
ompu
lsor
y Ea
rthq
uake
Insu
ranc
eis
an
insu
ranc
e pr
oduc
t or
ient
ed t
owar
ds t
he d
wel
lings
wit
hin
the
boun
dari
es
of
the
mun
icip
alit
ies.
Th
is
cove
rage
is
a
com
puls
ory
insu
ranc
e, f
or w
hich
the
gua
rant
ee i
s pr
ovid
ed
by
TClP
bu
t th
e m
arke
ting
au
thor
ity
is
give
n to
th
e
auth
oriz
ed
insu
ranc
e co
mpa
nies
an
d th
eir
agen
cies
, to
prov
ide
cove
rage
for
the
pro
pert
y da
mag
es c
ause
d by
the
eart
hqua
kes
on
dwel
lings
.
The
peri
od
of
circ
ulat
ion
of
Com
puls
ory
Eart
hqua
ke I
nsur
ance
is
one
year
. Th
e po
lices
mus
t be
ren
ewed
pri
or t
o it
s ex
piry
eve
ry y
ear.
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
Com
puls
ory
Eart
hqua
ke in
sura
nce
has
to b
e bo
ught
for
the
dw
ellin
gs a
nd in
depe
nden
t se
ctio
ns in
dica
ted
belo
w:
The
dwel
lings
co
nstr
ucte
d on
re
al
esta
tes,
w
hich
ar
e re
gist
ered
at
the
Land
Reg
istr
y O
ffic
ean
d su
bjec
t to
pri
vate
ow
ners
hip;
Inde
pend
ent
sect
ions
w
hich
ar
e si
tuat
ed
wit
hin
thes
e bu
ildin
gs
and
used
as
w
orkp
lace
, of
fice
an
d w
ith
sim
ilar
purp
oses
;
The
dwel
lings
ei
ther
co
nstr
ucte
d by
th
e St
ate
due
to
Nat
ural
Dis
aste
rs o
r bu
ilt w
ith
the
cred
it p
rovi
ded
by t
he
gove
rnm
ent.
How
are
the
pre
miu
ms
calc
ulat
ed?
The
amou
nt o
f th
e an
nual
pre
miu
m s
how
s va
riat
ions
in
rela
tion
to
the
size
of
dwel
ling,
typ
e of
con
stru
ctio
nan
d th
e se
ism
ic z
one
it i
s lo
cate
d in
. Th
ere
are
five
dif
fere
nt
seis
mic
zon
es i
n Tu
rkey
. A
ccor
ding
ly,
high
er p
rem
ium
s ar
e pa
id i
n hi
gh r
isk
regi
ons
and
low
er p
rem
ium
s ar
e pa
id i
n lo
w r
isk
regi
ons.
A d
educ
tibl
e of
2%
is
impo
sed
in o
rder
to
avoi
d sm
all
clai
ms
and
redu
ce a
dmin
istr
ativ
e co
sts.
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
How
are
the
pre
miu
ms
calc
ulat
ed?
The
insu
ranc
e pr
emiu
ms
incr
ease
eve
ry y
ear
in p
aral
lel
to
the
incr
ease
in
the
cons
truc
tion
cos
ts,
but
they
are
kep
t at
an a
ffor
dabl
e le
vel.
If
the
dwel
ling
sum
ins
ured
exc
eeds
the
TCIP
lim
it,
then
the
ins
ured
can
ask
for
a h
omeo
wne
rs p
olic
y
thro
ugh
the
priv
ate
insu
ranc
e co
mpa
nies
in
exce
ss o
f th
e
curr
ent
TCIP
pol
icy.
The
land
val
ue is
not
incl
uded
und
er t
he
“sum
insu
red”
.
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
0.58
0.78
1.76
3.53
5.50
C-O
ther
s
0.50
0.60
1.43
2.75
3.85
B-M
ason
ry
0.44
0.55
0.83
1.55
2.20
A-S
teel
or
rein
forc
ed
conc
rete
Seis
mic
Zo
ne V
‰
Seis
mic
Zo
ne IV
‰
Seis
mic
Zo
ne II
I‰
Seis
mic
Zo
ne II
‰
Seis
mic
Zo
ne I
‰TY
PE O
F CO
NST
RUCT
ION
Tari
ff R
ate
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
Tari
ff R
ate
The
Com
puls
ory
Eart
hqua
ke In
sura
nce
Prem
ium
for
a d
wel
ling
of 1
00 s
quar
e m
eter
s(C
alcu
late
d ac
cord
ing
to t
hera
tes
of y
ear
2006
)
25YT
L25
YTL
37YT
L65
YTL
95YT
L($
65)
C-O
ther
s
25YT
L27
YTL
51YT
L90
YTL
122
YTL
($ 8
5)B-
Mas
onry
28YT
L($
20)
33YT
L44
YTL
74YT
L10
0YT
L($
70)
A-
Stee
l or
rein
forc
ed
conc
rete
Seis
mic
Zo
ne V
Seis
mic
Zo
ne IV
Seis
mic
Zo
ne II
ISe
ism
ic
Zone
IISe
ism
ic
Zone
ITy
pe o
f co
nstr
ucti
on
Tota
l Num
ber
of P
olic
ies
2.58
3.68
2
Tota
l Cov
erag
e (Y
TL)
111.
135.
270.
590
($ 7
8.3
x 10
9 )
Tota
l Ann
ual P
rem
ium
(YT
L)
209
.843
.290
Aver
age
Cove
rage
(YT
L)43
,014
($
30,5
00)
Aver
age
Prem
ium
(YT
L)81
($ 5
7)
Gro
wth
by
num
ber
of p
olic
ies
(%)
6 %
Rene
wal
Rat
e (%
)34
%
Tota
l num
ber
of C
laim
File
s
8.91
3
Tota
l Cla
ims
Paid
(si
nce
2000
)(YT
L)17
.624
.960
($
12.5
00.0
00)
Fact
s an
d N
umbe
rs a
s of
24.0
1.20
07
Insu
red
19,9
%
Un
-Insu
red
80,1
%
12.9
90.0
00 h
ouse
s
2.58
3.68
2 po
licie
s
Pene
trat
ion
asof
24.0
1.20
07
Pene
trat
ion
vari
es b
etw
een
8% a
nd 2
8%
Pene
trat
ion
/ G
eogr
aphi
cal R
egio
n
209.
843.
290
19,9
2.58
3.68
212
.988
.663
TOTA
L
19.0
79.6
0220
,445
3.76
62.
227.
055
CEN
TRA
L A
NA
TOLI
A
107.
229.
916
28,4
1.17
7.01
24.
143.
473
MA
RMAR
A
12.9
89.8
6613
,417
1.71
31.
282.
095
BLA
CK S
EA
3.48
6.16
37,
857
.592
742.
865
SOU
THEA
ST A
NA
TOLI
AN
45.1
19.0
0819
,445
0.44
72.
318.
262
AEG
EAN
5.98
8.52
810
,564
.092
611.
788
EAST
AN
ATO
LIA
N
15.7
15.6
8412
,620
9.06
01.
663.
126
MED
ITER
RAN
EAN
PREM
IUM
(YTL
)PE
NET
RATI
ON
RA
TIO
%N
UM
BER
OF
POLI
CIES
NU
MBE
RO
F H
OU
SES
*RE
GIO
N
Spre
ad /
Geo
grap
hica
l Reg
ions
Ce
ntr
al
An
ato
lian
18%
So
uth
Eas
t A
nat
olia
n2%
Bla
ck S
ea
7%
Mar
mar
a46
%A
eg
ean
17%
Me
dit
err
ane
an8%
Eas
t A
nat
olia
n2%
100,
02.
583.
682
TOTA
L
17,6
453.
766
CEN
TRA
L A
NA
TOLI
A
45,6
1.17
7.01
2M
ARM
ARA
6,6
171.
713
BLA
CK S
EA
2,2
57.5
92SO
UTH
EA
ST A
NA
TOLI
AN
17,4
450.
447
AEG
EAN
2,5
64.0
92EA
ST A
NA
TOLI
AN
8,1
209.
060
MED
ITER
RAN
EAN
SPRE
AD
RA
TIO
%
NU
MBE
R O
F PO
LICY
REG
ION
Clai
ms
as o
f 24
.01.
2007
17.6
258.
913
148
TOTA
L
1.20
345
019
2006
7.99
03.
471
3920
05
768
586
3120
04
5.20
32.
504
2020
03
2.28
41.
558
2120
02
127
338
1720
01
236
120
00
To
tal
Cla
ims
Paid
(0
00
YT
L)
To
tal N
o.
of
Cla
im F
iles
Nu
mb
er
of
Eart
hq
uakes
Year
Clai
ms
(24.
01.2
007)
Acc
ess
•Tw
o di
ffer
ent
acce
ssm
etho
ds a
re u
sed
by in
sura
nce
com
pani
es:
Dir
ect
acce
ss v
ia in
tern
et (
ww
w.d
ask.
gov.
tr);
Onl
ine
real
tim
e co
nnec
tion
bet
wee
n D
ASK
ap
plic
atio
n an
d in
sura
nce
com
pany
’s s
oftw
are.
•TC
IP a
pplic
atio
n is
thr
ee le
vel j
ava
base
d ap
plic
atio
n, s
o th
ere
are
web
, ja
va a
pplic
atio
n an
d da
taba
se s
erve
rs.
Conc
ludi
ng C
omm
ents
: G
ener
al
CON
CLU
DIN
G C
OM
MEN
TS B
ASE
D O
N P
AST
EXP
ERIE
NCE
The
deci
sion
tha
t on
ly p
rope
rty
cove
red
by t
he i
nsur
ance
w
ill b
e el
igib
le t
o re
ceiv
e co
mpe
nsat
ion
is a
ver
y si
gnif
ican
t re
form
, co
nsid
erin
g th
e tr
adit
iona
l pr
acti
ce a
nd r
ealit
ies
in
Turk
ey.
TCIP
was
aim
ed t
o be
the
onl
y so
urce
of
fund
ing
for
the
eart
hqua
ke lo
sses
in r
esid
enti
al b
uild
ings
.
TCIP
is
pr
oved
to
be
a
wel
l de
sign
ed
publ
ic-p
riva
te
part
ners
hip
due
to
its
sati
sfac
tory
pe
rfor
man
ce
over
a
rela
tive
ly s
hort
per
iod
of t
ime.
A n
umbe
r of
ini
tiat
ives
are
sti
ll be
ing
unde
rtak
en f
or t
he b
ette
rmen
t of
the
sys
tem
in
vari
ous
aspe
cts.
Co
ncl
ud
ing
Co
mm
ents
: G
ener
al
TCIP
is
su
perv
ised
by
th
e U
nder
-sec
reta
riat
of
Tr
easu
ry,
whi
ch f
orm
s th
e pu
blic
sid
eof
thi
s pa
rtne
rshi
p.
The
Und
er-s
ecre
tari
at is
res
pons
ible
for
over
seei
ng o
f th
e pr
ogra
m,
audi
ting
of
all o
pera
tion
s an
d ac
coun
ts o
f TC
IP.
The
othe
r pa
rtne
r (p
riva
te
sect
or)
perf
orm
s th
e ad
min
istr
ativ
e du
ties
. By
eng
agin
g th
e pr
ivat
e se
ctor
in
the
proc
ess
of a
dmin
istr
atio
n, t
he b
urea
ucra
tic
burd
ens
are
min
imiz
ed.
Form
atio
n of
a
very
la
rge
pool
in
depe
nden
t of
th
e na
tion
al b
udge
t an
d th
eref
ore
to a
lar
ge e
xten
t fr
ee o
f th
e m
oles
t of
po
litic
al
deci
sion
m
aker
sis
am
ong
the
maj
or b
enef
its
of t
he s
yste
m.
Conc
ludi
ng C
omm
ents
: G
ener
al
In t
erm
s of
pro
gram
cha
ract
eris
tics
TCI
P ca
n fo
rm a
ro
le m
odel
for
cou
ntri
es w
ith
sim
ilar
expo
sure
s an
d ec
onom
ic c
ondi
tion
s.
TCIP
has
all
the
mai
n co
mpo
nent
s an
d th
e po
tent
ial
for
subs
titu
ting
for
the
gov
ernm
ent,
in
com
pens
atin
g po
st d
isas
ter
loss
es
in r
esid
enti
al b
uild
ings
th
roug
h an
insu
ranc
epr
ogra
m.
Conc
ludi
ng C
omm
ents
: Pr
oble
ms
MA
JOR
PRO
BLEM
S
•Lo
w p
enet
rati
on r
ate:
If t
he w
hole
bui
ldin
g st
ock
is c
onsi
dere
d th
e cu
rren
t pe
netr
atio
n ra
te is
abo
ut 2
0%.
If t
he e
ligib
le b
uild
ing
stoc
k is
con
side
red
(i.e
. th
ose
build
ings
tha
t ar
e re
gist
ered
at
the
cada
stra
l
reco
rds)
a m
ore
real
isti
c ra
te w
ill b
e ob
tain
ed a
s35
%-4
0%.
•Lo
w r
ate
of r
enew
al:
It is
abo
ut 3
4%as
of
Janu
ary,
200
7, a
nd n
eeds
to
be
impr
oved
sub
stan
tial
ly.
Co
ncl
ud
ing
Co
mm
ents
: P
rob
lem
s
Reas
ons
for
low
leve
l of
pene
trat
ion
are:
A
fata
listi
c m
enta
lity
in
soci
ety
and
the
habi
t of
ex
pect
ing
the
Stat
e to
pro
vide
eve
ryth
ing;
A lo
w le
vel o
f in
com
e;
The
cult
ural
aw
aren
ess
of i
nsur
ance
has
not
reac
hed
a su
ffic
ient
lev
el i
n ou
r co
untr
y an
d ob
tain
ing
insu
ranc
e is
no
t a
high
pri
orit
y in
our
dai
ly li
ves;
Ther
e ar
e no
leg
alpe
nalt
ies
or f
ines
for
the
enfo
rcem
ent
of t
he “
com
puls
ory”
ear
thqu
ake
insu
ranc
e.
Co
ncl
ud
ing
Co
mm
ents
: P
rob
lem
s
The
popu
list
tren
dof
gov
ernm
ents
: w
illin
gnes
s to
pr
ovid
e po
st
disa
ster
ai
d to
ho
meo
wne
rs
by
them
selv
es.
This
de
stro
ys
the
hom
eow
ners
’ in
cent
ive
to p
arti
cipa
te in
the
pro
gram
.
Inst
ead,
the
Sta
te m
ay s
ubsi
dize
the
eart
hqua
ke
insu
ranc
e pr
emiu
m f
or t
he l
ow-i
ncom
e se
ctio
n of
th
e po
pula
tion
.
Co
ncl
ud
ing
Co
mm
ents
: P
rob
lem
s
As
of M
arch
27,
200
1 th
e le
gal
oblig
atio
n of
th
e go
vern
men
t, d
eter
min
ed b
y th
e D
isas
ter
Law
for
the
co
mpe
nsat
ion
of l
osse
s of
dis
aste
r vi
ctim
s, h
as b
een
term
inat
ed.
How
ever
, th
is p
rovi
sion
has
bee
n w
aive
d tw
ice
sinc
e th
en:
afte
r th
e 3
Febr
uary
200
2 A
fyon
(m
agni
tude
6.0
) an
d 1
May
200
3 Bi
ngol
(m
agni
tude
6.
4) e
arth
quak
es.
This
att
itud
e ha
d a
very
adv
erse
ef
fect
on
the
pene
trat
ion
rate
.
TCIP
was
est
ablis
hed
by a
tem
pora
ry g
over
nmen
tal
decr
ee.
For
its
full
effe
ct t
he p
arlia
men
t sh
ould
pas
s th
efo
llow
up
“Ear
thqu
ake
Insu
ranc
eLa
w”,
mak
ing
the
eart
hqua
kein
sura
nce
real
ly a
com
puls
ory
one.
To
date
the
par
liam
ent
has
not
pass
ed t
his
legi
slat
ion
whi
ch h
as b
een
wai
ting
the
re f
or m
ore
than
a y
ear.
Co
ncl
ud
ing
Co
mm
ents
: F
utu
re Is
sues
FUTU
RE IS
SUES
Allo
cati
on o
f a
mod
est
port
ion
of a
nnua
l inc
ome
of t
he p
ool
to m
itig
atio
n in
vest
men
ts(e
.g.
risk
avo
idan
ce a
nd r
educ
tion
pr
ojec
ts,
revi
sion
s in
lan
d us
e pl
anni
ng,
retr
ofit
ting
of
publ
ican
d pr
ivat
e bu
ildin
gs).
Due
to
poor
con
trol
of
cons
truc
tion
in
Turk
ey,
a la
rge
degr
ee o
f da
mag
e is
exp
ecte
d if
a m
ajor
ear
thqu
ake
hits
a
larg
e ci
ty,
as o
bser
ved
duri
ng t
he r
ecen
t ea
rthq
uake
s.Th
e ea
rthq
uake
in
sura
nce
can
be
used
as
a
tool
fo
r th
e en
forc
emen
t of
the
ear
thqu
ake
resi
stan
t pr
ovis
ions
of
the
Code
. Fo
r th
is
purp
ose
insu
ranc
e pr
emiu
ms
shou
ld
be
grad
uate
d ta
king
int
o co
nsid
erat
ion
the
“sei
smic
res
ista
nce
qual
ity”
of t
he b
uild
ings
. In
oth
er w
ords
,lo
wer
pre
miu
ms
shou
ld b
e ch
arge
dfo
r bu
ildin
gs t
hat
com
ply
wit
h th
e Se
ism
ic
Code
req
uire
men
ts.
Ack
no
wle
dg
emen
ts
ACK
NO
WLE
DG
EMEN
TSTh
anks
are
due
to:
Mr.
Idri
s Se
rdar
, U
nder
-sec
reta
riat
of
Trea
sury
,Ch
airm
an o
f th
e Bo
ard
of D
irec
tors
, TC
IP;
Mr.
Sel
amet
Yaz
ici,
Per
man
ent
Del
egat
ion
of
Tu
rkey
to
OEC
D;
Ms.
Ebr
u G
enco
sman
oglu
,U
nder
-sec
reta
riat
of
Trea
sury
;
Ms.
Ser
pil O
ztur
k Ya
kut,
Gar
anti
Insu
ranc
e
for
prov
idin
g so
me
of t
he in
form
atio
n us
ed in
thi
s pr
esen
tati
on.