Bloomberg reported that Turkish President Recep Tayyip Erdogan said the initial state response had been slowed by the fact that emergency personnel and their families were themselves trapped under collapsed buildings.
BoFA estimates that rebuilding costs in Turkey could be between $3 billion and $5 billion, or possibly more.
BoFA Estimates $3 Billion or More Reconstruction Cost
“It is very hard to put numbers on total cost at this point” but the estimated reconstruction cost of collapsed and damaged buildings in Turkey is around $3-5 billion, Bank of America’s Turkey economist Zumrut Imamoglu said in a note. “At least another $2-3 billion needed for supporting impacted people,” according to the report.
“There are many other costs associated with the disaster such as repair of energy and transport network, destroyed business activity, increase in NPLs and other humanitarian costs.”
Fitch: Insurance Losses from Turkiye-Syria Earthquake
Most insurance payouts due to the earthquake that tragically hit Turkiye and Syria will ultimately be borne by global reinsurers, Fitch Ratings says.
This is first and foremost a human tragedy, which has led to several thousand fatalities and left hundreds of thousands of people homeless.
Insurable losses are hard to estimate as the situation is evolving, but they appear likely to exceed USD2 billion and could reach USD4 billion or more. However, insured losses could be much lower, perhaps around USD1 billion, due to low insurance coverage in the affected regions. The vast majority of insured losses will be covered by reinsurance, but the amount ceded is likely to be insignificant in the context of the global reinsurance market, with no implications for reinsurers’ ratings.