Contents -- Acknowledgments -- Introduction -- Abbreviations -- 1. The Making of the Turkish Catastrophe Insurance Pool: Risk Reality and Risk Perception -- Turkey's Exposure to Earthquakes -- Role of the Government -- Role of the World Bank -- Turkish Public Relations and Communications Campaign -- Turkish Insurance Industry -- Marmara Earthquake -- Marmara Earthquake Emergency Reconstruction Project -- 2. Objectives and Design: Political Economy and Technical Imperatives -- Enabling Legal Framework -- Institutional Structure -- Earthquake Insurance Coverage Terms and Conditions -- Risk Financing Strategy -- 3. Operational Logistics and Corporate Financial Framework: Key Challenges -- Economic Environment and the 2001 Financial Crisis -- Legal Framework -- Corporate Governance -- Insurance Operations -- Consumer Demand for Earthquake Insurance -- 4. Future Challenges: Threats and Opportunities -- Insurance Penetration -- Risk Management Challenges -- Potential Ways Forward -- Appendixes -- 1. English Translation of Governmental Decree Law No. 587 on Compulsory Earthquake Insurance as Published in Official Gazette No. 23919 (December 27, 1999) -- 2. International Experience with Catastrophe Funds -- Bibliography -- Index -- Boxes -- 1.1 Source of Seismicity in Turkey -- 1.2 Supply- and Demand-Side Failures of Private Disaster Insurance Markets -- 2.1 Setting TCIP Premium Rates -- 2.2 TCIP Reinsurance Tender -- 3.1 Responsibilities of the TCIP Board -- A2.1 California Earthquake Authority -- A2.2 New Zealand Earthquake Commission -- Figures -- 1.1 Comparison of Aggregate Vulnerability Curves for Residential Buildings and Commercial Constructions in Turkey and Highly Developed Economies -- 1.2 World Bank Disaster-Related Lending, 1980-2002 -- 1.3 World Bank Emergency Lending, 1980-2002 -- 1.4 Framework of the MEER Emergency Response Loan.

2.1 TCIP Organizational Structure -- 2.2 Reinsured Fire Premium, 2000-3 -- 2.3 Reinsurance Pricing Volatility -- 2.4 Earthquake Hazard Map of Turkey -- 2.5 Average Individual TCIP Insurance Premium -- 2.6 TCIP Premium Rates for Construction Types A, B, and C, 2000-4 -- 2.7 TCIP Portfolio Loss Exceedance Curve -- 3.1 TCIP Marketing Process -- 3.2 Percent of Annual Reinsurance Agreements under the TCIP, Nov. 1-Oct. 31, 2001-5 -- 3.3 The TCIP's Current Information Technology System -- 4.1 TCIP Insurance Penetration in Rural Areas, 2001-5 -- Tables -- 1.1 Significant Seismic Activity during the Twentieth Century -- 1.2 Economic Direct Loss Potentials -- 1.3 World Bank Emergency Reconstruction Lending in Turkey, 1992-9 -- 1.4 Nonlife Insurance Penetration in Turkey and Selected Countries, 2004 -- 1.5 Selected Economic Indicators for the Marmara Earthquake Region -- 1.6 Macroeconomic Costs of the Marmara Earthquake -- 2.1 Realized Rates on Line (ROL), Nov. 1-Oct. 30 -- 2.2 World Bank Contingent Facility -- 2.3 Sum Insured (as of January 1, 2005) -- 2.4 Compulsory Earthquake Insurance Premium Rates -- 2.5 TCIP Total Claims-Paying Capacity in Millions of Dollars, 2001-5 -- 3.1 Distribution of TCIP Portfolio by Region -- 3.2 Regional TCIP Insurance Penetration since the TCIP's Inception -- 3.3 TCIP Statement of Income, as of October 28, 2004 -- 3.4 TCIP Balance Sheet since the Pool's Inception, 2000-4 -- 3.5 Advertising Campaign and TCIP Participation, 2000-5 -- A2.1 Government-Sponsored Catastrophe Insurance Programs -- A2.2 Catastrophe Program Design Variables -- A2.3 Insurance Vehicles -- A2.4 Rates Charged and Mitigation Incentives.

The persistent potential for large scale natural disasters has become a real concern for the Turkish government since the late 1990s, which ultimately led to the establishment of the Turkish Catastrophe Insurance Pool (TCIP). Among the main rationale of the creation of the TCIP were a grave government fiscal exposure to natural disasters and a disproportionately low level of catastrophe insurance penetration for such a disaster-prone country. Since the commencement of this program in 2000, the TCIP has provided coverage to more than 2 million households, being by far the largest insurance program in the country. In four years, the TCIP has managed to become one of the most trusted brand names in the Turkish insurance industry, and one of the largest catastrophe insurance pools in the world. Its success has also brought an international recognition, inspiring more than a dozen of countries world wide. The TCIP experience has also been a watershed for the World Bank as it has led to a rethinking of the roles of ex ante risk management relative to ex post donor support. This book presents the main technical imperatives and challenges in the development and the implementation of the TCIP and shows how a public-private partnership may be the way forward in the financing of natural disasters. If offers valuable advise and guidelines to policymakers involved in the development of catastrophe insurance programs.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.