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Turkey quakes loss still rising: Perils 

Perils has released updated loss figures for the deadly Turkey and Syria earthquakes, declaring insured costs at TRY 92.8 billion ($5.29 billion) six months after the event.   

A sequence of high-magnitude quakes struck the region on February 6, severely damaging thousands of buildings in Turkey’s southern region and causing significant loss of life, with the death toll above 59,000.  

The event marked the costliest insured event in Turkey’s history despite poor enforcement of the country’s mandated earthquake insurance scheme, which requires homeowners to purchase coverage for residential properties.  

Perils’ last estimate, issued three months following the event, measured losses at TRY86.4 billion ($4.92 billion), which had been converted to $6.55 billion at the time before the Turkish Lira’s exchange rate drastically worsened in June. Government figures place the direct cost of physical damage from the event at TRY1.6 trillion ($91 billion).   

Perils CEO Luzi Hitz says the country faces growing issues with its recovery as the local economy worsens and inflation hampers efforts for insurers to process claims.  

He says under exchange rates from February, the quake’s insured loss figure would have equated to $7.57 billion.   

“Currency fluctuation is one example of the many challenges facing the Turkish insurance market as it continues to successfully process an unprecedent number of insurance claims from this event,” Mr Hitz said.