Economic impacts of disasters and possible solutions

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Economic impacts of disasters and possible
solutions

• B. Burçak Basbug
• Middle East Technical University
• Disaster Management Center
• www.dmc.metu.edu.tr
• 19/March/2007, Ankara

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• OUTLINE
• Economic losses
• Global cases
• Turkey case

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Economic impacts of disasters
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• Possible solutions
• Contingent credit/reserve fund
• (RE)INSURANCE
• International aid

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• Global models
• India Micro insurance
• Philippines Reserve Fund / Crop Insurance.
• Latin America Weather-index insurance.
• Turkey Turkish Catastrophe Insurance Pool.

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• TCIP
• In application since 27/September/2000.
• Covers the losses caused by earthquake itself,
  fires-explosions and landslides following the
  earthquake.
• Only insures the residential buildings within
  the municipality borders. No insurance is offered
  for rural areas, business promises or the
  building contents.

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• 1- year contract period. Approximately 2.5
  million policies.
• Total payment capacity in 2006 is more than USD
  1.33b.
• 15 tariffs 5 different risk zones 3 building
  types

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• www.dask.gov.tr
• Thank you!