The 7.2 magnitude quake looks set to generate insured losses of between $55 million and $170 million, AIR said.

That compares with a preliminary loss estimate of between $100 million and $200 million published by rival risk modeler Eqecat last week.

The insurance industry absorbed a record $70 billion of catastrophe losses in the first half of 2011, according to reinsurer Swiss Re , with the March 11 Japanese earthquake and tsunami accounting for about half the total.

AIR, whose loss estimates are used alongside Eqecat’s in setting insurance prices, said the impact of the Turkish quake had been mitigated by a generally low level of insurance penetration in eastern Turkey.

Insurers say it takes longer to assess the impact of earthquakes than hurricanes as much of the damage they cause to buildings is below ground and is not immediately apparent.

Earlier this year, several insurers had to raise their initial loss estimates from the quake that hit New Zealand in September last year.