Key Challenges for the Region
Seismic Risk Exposure: Turkey is situated on two major fault lines, making it highly susceptible to seismic activity and increasing the potential for heavy losses due to earthquakes.
Limited Capacity of Traditional Insurance: Traditional insurers often struggle to meet the excess capacity demands of corporations and public entities, leaving them underinsured.
Lengthy Claims Procedures: In the aftermath of an earthquake, businesses can face significant delays in receiving indemnification and therefore struggle to quickly recover.

Key benefits of parametric insurance
Earthquakes are one of the most unpredictable and costly perils. Those exposed to them can experience property damage, business interruptions, and non-damage business interruptions.
Descartes’ Parametric Earthquake Insurance: An Intensity-Based Approach
Descartes' Parametric Peak Ground Acceleration Insurance is an intensity-based solution that strongly correlates to the earthquake risk at hand. Intensity-based scales, such as Peak Ground Acceleration (PGA), measure the intensity of ground shaking during an earthquake, taking into account the varying degrees of damage caused. With this parametric solution, clients gain peace of mind through transparent coverage and swift payouts.
case study example
Parametric Peak Ground Acceleration Solution for Turkey
Situated on two major fault lines, Turkey is one of the most earthquake-prone regions in the world.
Problem
On February 6, 2023, a devastating magnitude 7.8 earthquake (max PGA of 105.7%g) struck south-central Turkey, causing widespread destruction across the region. This catastrophic event served as a harsh reality for the corporate client, exposing the inadequacy of their existing earthquake insurance limit in one of the world’s most seismically active and high-risk areas. The significant losses sustained had underscored the critical need for more comprehensive coverage to protect against such extreme natural disasters.
Solution
The client searched for additional international capacity, where they opted to go for a parametric cover due to the increased rates that international insurers were charging following the 2023 event. Descartes’ parametric insurance met their needs.
Result
If an event such as the 2023 Turkey Earthquake were to occur close to the client's location, with a PGA of 100%g, the client would receive 80% of the €50M sum insured.

Interested in a solution ?
