It is known that Turkish Insurance Industry carried out its task immediately and in full in respect of the earthquake disasters occured in 1999 in Turkey resulting with an increase in demand for earthquake insurance. Following these disasters, the government issued Decree no.587 on 27th December, 1999 according which the earthquake insurance became compulsory for dwellings and independent units within these dwellings used for commercial, office and similar kind of purposes as from 27th March, 2001. The Turkish Catastrophe Insurance Pool (TCIP=DASK) was formed to handle these insurances and started its operations and the general conditions, tariffs and instructions of the compulsory earthquake insurance were prepared and put into practise. Taking the same into consideration the tariff applied for earthquake and volcanic eruption risks included within the allied perils of fire insurances were rearranged and put into effect as of 1st November, 2000.

On the other hand, the necessary adjustments were carried out in respect of the tariff applied in the sector regarding the Strike, Riots, Civil Commotion, Malicious Damage and Terrorism Risks and put also into effect as of 1st January, 2001.

The year 2000 was a positive year for the fire branch as no crucial losses occurred.

The total policy number in this branch increased by 15,44 percent to 1.702.896 in 2000 whereas it was 1.475.137 in 1999.

The 2000 premium income in the fire branch, were 40 companies were active, increased to 261,9 trillion Turkish Liras representing a 64,13 percent, increase in current prices and 31,50 percent in terms of the US Dollar over the previous year.

Consequently, the proportion of the fire branch's premium production within the total dropped to 14,13 percent in 2000, whereas it was 16,19 percent in 1999.

The loss ratio in this branch was of 39,60 percent in 2000 representing a remarkable decrease in comparison to the previous year.

This branch's share within the total technical profit dropped to 21,26 percent in 2000 whereas it was 41,92 percent in 1999.