Fire Following Earthquake—The Potential in Istanbul

Fire following earthquake is a little recognized risk in seismic regions with significant wood building inventories. Methods exist for quantifying this risk, and examples are provided in this chapter for San Francisco, Istanbul and Montreal. There are many opportunities for reducing this risk, and examples are provided regarding reducing fire station vulnerability and improving emergency firefighting water supply. Once accomplished however, vigilance is required to maintain these mitigation measures.

The Role of Earthquake Insurance in Earthquake Risk Reduction and Resilience Building

Resilience is defined as “The ability to prepare and plan for, absorb, recover from and more successfully adapt to adverse events” (US National Academies). Resilience has four pillars: • Anticipate: the ability to anticipate and reduce the impact of shocks through preparedness and planning, • Absorb the ability to absorb and cope with the impacts of shocks and stresses. • Adapt: the ability to change in response to multiple, long-term and future risks, and to learn and adjust after a shock materializes. • Transform: the ability to take deliberate steps to change the systems that create risk, vulnerability and or inequality. How does insurance intervene in building resilience? The outcome of insurance is to restore property and livelihoods in case of an adverse effect. It does that by providing a cash infusion into the socio-economic system of the affected communities immediately after the event. The cash is used to restore property and avoid interruption of commercial and industrial activity. Insurance also intervenes in terms of reducing impact of stresses (which are the more extensive types of risk) since it enables a system of “maintenance” by providing funds for recovery under minor but more frequent events. For most developing countries, governments have been the insurer of last resort when it comes to catastrophe risk (referred to as Cat Risk in the insurance industry). The reason is that level of cat insurance penetration in most developing countries is very low, sometimes lower than 1%. The assurance of government intervention coupled with the lack of effectiveness of the financial transaction associated with a traditional insurance policy negate any incentive for individuals to acquire a cat insurance policy. The Turkish Compulsory Insurance Program or TCIP is one of the early experiment to change that paradigm and to provide a meaningful role for cat insurance in emerging economies. After a slow start, TCIP has now developed the financial capacity and the spread of coverage to play a significant role both in the financing of risk but also in supporting earthquake risk reduction in Turkey. New cat insurance products based on parametric indexing have since emerged. These insurance products could further improve the efficiency of TCIP and other cat insurance pools by making them more attractive to individuals, thereby scaling up their contribution to building resilience.

Damage Assessment in Italy, and Experiences After Recent Earthquakes on Reparability and Repair Costs

Recent devastating earthquakes outlined the importance of quantifying losses and the amount of resources needed for the reconstruction process. The restoration of public or residential buildings in the aftermath of the seismic event may significantly affect national economy. This remarks the primary role and crucial need of having accurate predictions of direct and indirect costs for reconstruction in order to plan effective risk mitigation strategies and perform reliable loss scenarios. The recent Italian seismic events have been a unique occasion to collect observational data on existing buildings. The present work, based on the Italian experience of recent earthquakes, aims at discussing the main aspects related to the damage assessment of residential buildings and reconstruction models together with the huge amount of data collected in the reconstruction processes. In particular, an in-depth analysis of the data provided by the reconstruction process of 2009 L’Aquila earthquake is reported focussing on repair and strengthening intervention costs as a function of the empirical damage,repairability issues, and assistance to population costs. The data are discussed separately for reinforced concrete and masonry residential buildings and refers about 10,100 buildings located Outside Historical Centres (OHC) and Inside Historical Centres (IHC). Finally, the criteria adopted for the definition of the building seismic risk classes at the base of the Italian guidelines for seismic risk classification of constructions are presented together with recent policies adopted in Italy in terms of fiscal deduction for strengthening interventions on private residential buildings.

The Modified Post-earthquake Damage Assessment Methodology for TCIP (TCIP-DAM-2020)

Post-Earthquake damage assessment has always been one of the major challenges that both engineers and authorities face after disastrous earthquakes all around the world. Considering the number of buildings in need of inspection and the insufficient number of qualified inspectors, the availability of a thorough, quantitative and rapidly applicable damage assessment methodology is vitally important after such events. At the beginning of the new millennia, an assessment system satisfying these needs was developed for the Turkish Catastrophe Insurance Pool (TCIP, known as DASK in Turkey) to evaluate the damages in reinforced concrete (RC) and masonry structures. Since its enforcement, this assessment method has been successfully used after several earthquakes that took place in Turkey, such as 2011 Van Earthquake, 2011 Kutahya Earthquake, 2019 Istanbul Earthquake and 2020 Elazig Earthquake to decide the future of damaged structures to be either ‘repaired’ or ‘demolished’. Throughout the years, the number of research activities focusing on the reparability of earthquake-damaged structures has increased, which is a purposeful parameter in the determination of buildings’ future after earthquakes. Accordingly, TCIP initiated a research project with a sole aim to regulate and reevaluate the damage assessment algorithm based on the results of state-of-the-art scientific research. This chapter presents the new version of the damage assessment methodology for reinforced concrete structures which was developed for TCIP (TCIP-DAM-2020). In addition, an application of the developed damage assessment algorithm on an earthquake-damaged reinforced concrete building which was struck by Kocaeli (1999) earthquake is presented.

Seismic Fragility Relationships for Structures

Structural fragility assessment is a fundamental component of modern performance-based earthquake design and assessment processes. Major advances in fragility functions development and implementation have occurred over the past three decades.

Earthquake Catastrophe Risk Modeling, Application to the Insurance Industry: Unknowns and Possible Sources of Bias in Pricing

Mathematical risk assessment models based on empirical data and supported by the principles of physics and engineering have been used in the insurance industry for more than three decades to support informed decisions for a wide variety of purposes, including insurance and reinsurance pricing. To supplement scarce data from historical events, these models provide loss estimates caused to portfolios of structures by simulated but realistic scenarios of future events with estimated annual rates of occurrence. The reliability of these estimates has evolved steadily from those based on the rather simplistic and, in many aspects, semi-deterministic approaches adopted in the very early days to those of the more recent models underpinned by a larger wealth of data and fully probabilistic methodologies. Despite the unquestionable progress, several modeling decisions and techniques still routinely adopted in commercial models warrant more careful scrutiny because of their potential to cause biased results. In this chapter we will address two such cases that pertain to the risk assessment for earthquakes. With the help of some illustrative but simple applications we will first motivate our concerns with the current state of practice in modeling earthquake occurrence and building vulnerability for portfolio risk assessment. We will then provide recommendations for moving towards a more comprehensive, and arguably superior, approach to earthquake risk modeling that capitalizes on the progress recently made in risk assessment of single buildings. In addition to these two upgrades, which in our opinion are ready for implementation in commercial models, we will also describe an enhancement in ground motion prediction that will certainly be considered in the models of tomorrow but is not yet ready for primetime. These changes are implemented in example applications that highlight their importance for portfolio risk assessment. Special consideration will be given to the potential bias in the Average Annual Loss estimates, which constitutes the foundation of insurance and reinsurance policies’ pricing, that may result from the application of the traditional approaches.

Earthquake Risk Assessment from Insurance Perspective

The assessment of earthquake and risk to a portfolio, in urban or regional scale, constitutes an important element in the mitigation of economic and social losses due to earthquakes, planning of immediate post-earthquake actions as well as for the development of earthquake insurance schemes. Earthquake loss and risk assessment methodologies consider and combine three main elements: earthquake hazard, fragility/vulnerability of assets and the inventory of assets exposed to hazard. Challenges exist in the characterization of the earthquake hazard as well as in the determination of the fragilities/vulnerabilities of the physical and social elements exposed to the hazard. The simulation of the spatially correlated fields of ground motion using empirical models of correlation between intensity measures is an important tool for hazard characterization. The uncertainties involved in these elements and especially the correlation in these uncertainties, are important to obtain the bounds of the expected risks and losses. This paper looks at the current practices in regional and urban earthquake risk assessment, discusses current issues and provides illustrative applications from Istanbul and Turkey.

Earthquake Physical Risk/Loss Assessment Models and Applications: A Case Study on Content Loss Modeling Conditioned on Building Damage

This paper presents a novel approach to develop content fragility conditioned on building damage for contents used in residential buildings in Turkey. The approach combines the building damage state probabilities with the content damage probabilities conditioned on building damage states to develop the content fragilities. The paper first presents the procedure and then addresses the epistemic uncertainty in building and content fragilities to show their effects on the content vulnerability. The approach also accounts for the expert opinion differences in the content replacement cost ratios (consequence functions) as part of the epistemic uncertainty. Monte Carlo sampling is used to consider the epistemic uncertainty in each model component contributing to the content vulnerability. A sample case study is presented at the end of the paper to show the implementation of the developed content fragilities by calculating the average annual loss ratio (AALR) distribution of residential content loss over the mainland Turkey.

Simplified Analytical/Mechanical Procedure for Post-earthquake Safety Evaluation and Loss Assessment of Buildings

The crucial need to develop and implement simple and cost-effective repair and retrofit strategies and solutions for existing structures has been once again emphasized, if at all needed, by the recent catastrophic earthquake events. The significant socio-economic impacts of the Canterbury earthquakes sequence in 2010–2011 as well as of the “series” of independent events within few years in Italy (L’Aquila 2009; Emilia 2012; Central Italy 2016) have triggered a stepchange in the high-level approach towards the implementation of seismic risk reduction, introducing either a mandatory enforcement or significant financial incentives for a national-wide program to assess (and reduce by remedial intervention) the seismic vulnerability/capacity of the whole (non-dwelling) building stock, including safety and expected repairing costs (direct economic losses). This chapter provides an overview of the motivations, challenges and (possible) solutions for such a complex and delicate task with the intent to stimulate awareness, discussion and synergetic actions within the wider international community. Particular focus will be given to the development and on-going continuos refinement of a simplified analytical-mechanical methodology—referred to as SLaMA (Simple Lateral Mechanism Analysis) method—as part of a proposed integrated methodology for either pre- and post-earthquake safety evaluation and loss assessment of buildings, in order to support the engineering community and stakeholders through the various steps of the decision making process of risk (assessment and) reduction.

Risk Oriented Earthquake Hazard Assessment: Influence of Spatial Discretisation and Non-ergodic Ground-Motion Models

Three important aspects of ground-motion modelling for regional or portfolio risk analyses are discussed. The first issue is the treatment of discretisation of continuous ground-motion fields for generating spatially correlated discrete fields. Shortcomings of the present approach in which correlation models based upon point estimates of ground motions are used to represent correlations within and between spatial regions are highlighted. It is shown that risk results will be dependent upon the chosen spatial resolution if the effects of discretisation are not adequately treated. Two aspects of non-ergodic groundmotion modelling are then discussed. Correlation models generally used within risk modelling are traditionally based upon very simple partitioning of ground-motion residuals. As regional risk analyses move to non-ergodic applications where systematic site effects are considered, these correlation models (both inter-period and spatial models) need to be revised. The nature of these revisions are shown herein. Finally, evidence for significantly reduced between-event variability within earthquake sequences is presented. The ability to progressively constrain location and sequence-dependent systematic offsets from ergodic models as earthquake sequences develop can have significant implications for aftershock risk assessments.