Aon forecasts Turkey quake's economic impact totalling at least tens of millions of dollars

By Rebecca Delaney

April 25 - (The Insurer) - Economic losses from this week's earthquake in western Turkey are expected to reach at least tens of millions of dollars, pending future loss development, Aon forecast in its weekly cat report on Friday.

Several western Turkish provinces were hit by a 6.2 magnitude earthquake on April 23. The epicentre was located in the Sea of Marmara, around 70 kilometres southwest of Istanbul. The event, with more than 130 aftershocks recorded, caused hundreds of injuries and "moderate" structural damage across the region, including at least 380 damaged buildings in Istanbul.

Aon's weekly cat report said initial damage assessments indicate that total economic losses will reach at least tens of millions of dollars.

The U.S. Geological Survey's PAGER methodology has estimated higher initial losses, with a 43% probability of reaching hundreds of millions of U.S. dollars. PAGER also indicates a 29% likelihood of economic losses exceeding $1 billion.

Insured losses are expected to be much lower due to low insurance penetration rates in the affected regions.