Insurance companies operating in earthquake-prone regions of Turkey are required to conduct stress tests to assess their financial resilience, particularly against the potential Marmara earthquake. The directive applies to non-life insurance sectors, mandating that the tests be scientifically conducted with at least two different modeling firms. Insurance companies must report the results of these stress tests annually in a specified format to the authority.
In addition to scenarios related to the Marmara earthquake, the tests should cover other seismic regions. The findings will be used to calculate companies’ risk pools and determine their reinsurance needs. The significance of these results for risk management and financial resilience is emphasized, especially considering international reinsurance agreements.
