Insured losses from a magnitude 7.2 earthquake that struckeastern Turkey on Oct. 23 are estimated between $55 million and$200 million, according to two catastrophe-modeling firms.

The quake occurred nine miles north-northeast of Van, Turkey,which has a population of 372,000. Scores of buildings weredemolished throughout the region, and the event has taken the livesof more than 500 people.

Catastrophe-modeler Eqecat says insured losses could range from$100 to $200 million, although total economic damage is put in lowsingle-digit billions.

The economic damage is about one-tenth of that wreaked by the1999 magnitude 7.6 Izmit earthquake in western Turkey and 10 timesthe damage from the 2010 magnitude 6.1 earthquake in easternTurkey, says Eqecat.

The modeler notes that residential buildings throughout theeastern part of the nation are not constructed to withstandearthquakes.

Insurance losses are to be assumed by the Turkish CatastropheInsurance Pool (TCIP), a national earthquake insurance forresidential buildings.

TCIP penetration is approximately 20 percent, Eqecat estimates,and take-up in the east, where the earthquake occurred, is lessthan the national average. The company says its insured-lossestimate is based on damage to residential buildings.

Catastrophe-modeler AIR Worldwide puts estimated insured lossesfrom the quake at between $55 million and $170 million.

AIR says the range in losses is due to uncertainties that existin estimating earthquake-source parameters, including magnitude, rupture length, depth and dipping angle, amongothers.

Estimated losses include insured physical damage to property,both structures and their contents, and estimated losses for theTCIP, says AIR. The estimate does not include losses fromnon-modeled perils including landslide and fire-following; lossesto automobiles, uninsured properties, land, infrastructure, andcasualty and life lines; business-interruption losses; lossadjustment expenses; and demand surge—the increase in costs ofmaterials, services and labor due to increased demand following acatastrophic event.