AXA Turkey Launches “Earthquake Financial Support Insurance” for SMEs in Earthquake-Prone Regions
AXA Turkey has unveiled its groundbreaking “Earthquake Financial Support Insurance” product, tailored for small and medium-sized enterprises (SMEs) operating in regions prone to seismic activity. This novel insurance product is designed to swiftly disburse a predetermined financial amount to the insured when an earthquake of a specific magnitude occurs, irrespective of physical damage.
Staying true to its mission of delivering optimal solutions to customers, AXA Turkey’s latest parametric insurance initiative provides critical financial coverage for SMEs across select regions. Companies located in designated provinces within the Marmara, Aegean, Southeastern Anatolia, and Northeastern Anatolia regions, which meet specified risk criteria, are eligible to benefit from this innovative insurance offering.
Barış Altın, the Technical President and Executive Board Member of AXA Turkey, shed light on the operational mechanics and advantages of this offering. He emphasized that the insurance operates based solely on seismic data, eliminating the need for physical damage assessments. Altın remarked, “This product is engineered to address the immediate cash needs of SMEs impacted by earthquakes, thereby facilitating their recovery.”
Illustrating with an example, Altın explained, “In the event of a magnitude 7 earthquake in Marmara, an insured business in Düzce would receive coverage even in the absence of physical damage. The only requirements are that the earthquake’s magnitude exceeds a predefined threshold and occurs within a specified area. While our product features a straightforward structure, it is crucial that our policyholders fully understand its scope through our distribution channels to maximize its benefits.”
Altın further noted that AXA Turkey’s endeavors in parametric insurance extend beyond earthquakes, offering alternative solutions for risks associated with climate change and natural disasters. “Parametric insurance serves as a powerful tool in mitigating income losses, particularly in sectors such as agriculture, energy, and construction. As part of AXA Group, we actively engage in this domain across more than 40 countries globally. We are proud to initiate Turkey’s first parametric earthquake financial support insurance for SMEs.”
This pioneering product by AXA Turkey marks a significant milestone in the realm of parametric insurance, aiming to provide urgent financial solutions during disasters like earthquakes. It also assists policyholders in more effectively managing crisis situations, thereby enhancing business resilience in alignment with sustainability objectives.
For comprehensive details on this innovative parametric insurance product, please refer to the digital brochure: https://tinyurl.com/4jj9ujfd
