Strengthening earthquake resilience in Turkey
In Turkey we supported the Turkish Catastrophe Insurance Pool (TCIP ) to further improve insurance protection against earthquakes in Istanbul. With a population of 14 million, the metropolis generates a significant share of Turkey’s GDP, while living under the constant threat of severe earthquakes.
Originally set up in response to the strong Kocaeli and Duzce earthquakes of 1999, TCIP has done much over the years to improve insurance protection in the country. In addition to the support we provide through traditional reinsurance, in 2015 Swiss Re Capital Markets co-structured a USD 100 million catastrophe bond sponsored by the TCIP. Covering Istanbul’s large metropolitan area, the three-year bond has a parametric trigger that will pay out if the specified earthquake conditions are met. It was well received by investors and ensures that TCIP will have access to additional reconstruction funds in the event of a major earthquake.