Probabilistic assessment of earthquake insurance rates for Turkey

Yucemen M.

NATURAL HAZARDS, vol.35, no.2, pp.291-313, 2005 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 35 Issue: 2
  • Publication Date: 2005
  • Doi Number: 10.1007/s11069-004-6485-8
  • Journal Name: NATURAL HAZARDS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.291-313
  • Keywords: seismic hazard, earthquake engineering, earthquake insurance, building damage, damage probability matrix, risk premium, insurance premium, SEISMIC HAZARD, RISK, MODEL
  • Middle East Technical University Affiliated: Yes


A probabilistic model is presented to obtain a realistic estimate of earthquake insurance rates for reinforced concrete buildings in Turkey. The model integrates information on seismic hazard and information on expected earthquake damage on engineering facilities in a systematic way, yielding to estimates of earthquake insurance premiums. In order to demonstrate the application of the proposed probabilistic method, earthquake insurance rates are computed for reinforced concrete buildings constructed in five cities located in different seismic zones of Turkey. The resulting rates are compared with the rates currently charged by the insurance companies. The earthquake insurance rates are observed to be sensitive to the assumptions on seismic hazard and damage probability matrices and to increase significantly with increasing violation of the code requirements.