Turkish company plans to model earthquake risks in Azerbaijan
The Turkish company "T-Rupt" plans to start the implementation of the earthquake risk modeling project in Azerbaijan in the near future.
Azernews reports, citing AzerTag that "T-Rupt" CEO Erdem Karabostan told the Turkish media about this.
According to him, the company participates in various events and maintains active communication with the Azerbaijani side. At the end of May, the representatives of "T-Rupt" company participated in the conference dedicated to the stability of the financial system against catastrophic risks, jointly organized by the Central Bank and Azerbaijan Compulsory Insurance Bureau in Baku.
Karabostan noted that natural disaster risk modeling technology is of great importance primarily for the insurance market. "Our company has developed the CATMOD catastrophic risk modeling platform, which allows insurance companies to imagine the future of the market, taking into account the possibility of disasters such as earthquakes," explained the head of the company.
Karabostan recalled the consequences of the devastating earthquake that occurred in Turkey on February 6, 2023, which forced insurance companies to pay large compensations to property owners in 11 provinces of the country.
According to him, the practice of "reinsurance" (reinsurance) is used today in the international market, that is, an insurer transfers its risks or a part of risks to another insurance company under a contract in order to reduce the possibility of paying a large amount of compensation. However, such "risk sharing" is very expensive, and catastrophe risk modeling is a more cost-effective option for the insurance market.
"The CATMOD platform provides an idea of what the damage of earthquakes of different magnitudes will be in the region taken separately. This allows to reduce the amount of risks that can be "transferred" to other insurers. Regarding Turkey, our company has developed a platform that takes into account 100,000 earthquake scenarios," said the CEO of T-Rupt.
He pointed out that all software for the CATMOD platform is a product of Turkish specialists and is constantly updated. "The priority of international cooperation for T-Rupt is Turkish states and Eastern European countries. With the spread of compulsory earthquake insurance, interest in "CATMOD" will increase," he added.
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