The role of disasters in the turkish insurance market: An evaluation of the 2020 Elazig and 2023 Kahramanmaras earthquakes from the perspective of mandatory earthquake

Natural disasters, particularly earthquakes, impose significant limitations on the insurance sector in terms of both supply and demand dynamics. Located on an active fault line, Turkey frequently experiences devastating earthquakes, leading to significant human and economic losses. However, the level of insurance coverage, especially regarding mandatory earthquake safety, is relatively low compared to other high-risk regions. This research aims to fill a significant gap in the literature by investigating the extent to which major disasters alter insurance awareness, policy purchase, and industry response. While previous studies have examined general trends in insurance adoption after disasters, research on the Turkish market in the context of recent major earthquakes is limited. The findings of this study will contribute to a deeper understanding of the behavioral impacts of disasters on the insurance sector, offering important implications for policymakers and risk management strategies. The study adopted a quantitative descriptive and comparative analysis method. The data used in the study were obtained from secondary data published by the Natural Disaster Insurance Institution, the Turkish Insurance Association, the Insurance and Private Pension Regulation and Supervision Authority, and the Insurance Information and Monitoring Center. Policy number and premium production data were evaluated within the framework of geographical regions, earthquake risk levels, building construction years, distribution by provinces, and changes in DASK (Natural Disaster Insurance Institution) tariff prices. The examples obtained show that there are compulsory earthquake insurance policy increases after major earthquakes; However, it is seen that the increases in premium amounts are financially facilitated not only by the change in insurance rates, but also by economic factors and especially by tariff changes based on PPI monthly changes for women in 2024. It has also been observed that increases in insurance coverage are evident in the short term, but have limited permanence in the long term. This study reveals the impact of disasters on insurance coverage using current and comparative data, drawing attention to structural elements that need to be evaluated in terms of insurance sector practices and public policies; it aims to contribute to the development of more effective and sustainable insurance policies in disaster risk management. By revealing the impact of disasters on insurance behavior, it aims to contribute to the development of policies aimed at increasing resilience and insurance penetration levels in Turkey. The findings are expected to contribute to the fields of disaster risk management and financial resilience, helping to create a more sustainable insurance ecosystem in high-risk regions.