Türkiye eyes to model earthquake risks in Azerbaijan

REGION  20 June 2024 - 11:40

The Turkish T-Rupt company eyes to begin to implement a project to model earthquake risks in Azerbaijan soon.

The Turkish company is actively negotiating with the Azerbaijani side and participating in various events. For example, the representatives of T-Rupt company took part in a conference on the stability of the financial system to catastrophic risks organised in Baku jointly by the Central Bank of Azerbaijan and the Compulsory Insurance Bureau of Azerbaijan in late May, T-Rupt CEO Erdem Karabostan told Turkish media, the Azerbaijani local media reports.

Karabostan noted that the technology for modeling the risk of natural disasters is of great importance primarily for the insurance market.

“Our company has developed the CatMod  catastrophe earthquake modeling platform, which allows insurance firms to imagine the future of the market, taking into account the likelihood of disasters such as earthquakes,” he said.

He reminded the consequences of the devastating earthquake in Türkiye on February 6, 2023, which forced insurance companies to pay big compensation to property owners in 11 Turkish provinces.

“Today the practice of ‘reinsurance’ is used in the international market, when one insurer transfers risks or some risks to another insurance company upon an agreement to reduce the likelihood of paying a big compensation. However, such ‘risk exchange’ is very expensive, while disaster risk modeling is a more profitable choice for the insurance market,” he said.

“The CatMod platform unveils the damage from earthquakes of various magnitudes in a certain region. This allows to reduce the risks that can be ‘transferred’ to other insurers. As for Türkiye, our company has developed a platform that takes into account 100,000 earthquake scenarios,” he noted.

He stressed that all software for the CatMod platform is a product of Turkish specialists, which is constantly renewed.

“The priority of international cooperation for T-Rupt is the Turkic-speaking states and the countries of Eastern Europe. After the practice of compulsory earthquake insurance  spreads, an interest in CatMod will increase,” Karabostan added.

Caliber.Az