By assessing the overall costs of a potential 7.1-magnitude earthquake in Quebec and a potential 9.0-magnitude earthquake in British Columbia, an IBC study shows that the country is not prepared for a major seismic event.
Released in 2013, the “Study of Impact and the Insurance and Economic Cost of a Major Earthquake in British Columbia and Ontario/Québec” report summarizes the impact and costs of an earthquake.
An Earthquake Wake-Up Call for Canadians
IBC’s commissioned earthquake study estimates the overall costs after a 9.0-magnitude earthquake in British Columbia at almost $75 billion. It estimates the costs after a 7.1-magnitude earthquake in the Quebec City-Montreal-Ottawa corridor at almost $61 billion.
The full report quantifies the damage that can be expected. It demonstrates that a major earthquake would have a significant economic impact regionally as well as cause a domino effect on the economy of Canada.
Groundbreaking Study
The study is the first major Canadian research of its kind in 20 years. AIR Worldwide, global experts in catastrophe modelling, conducted the peer-reviewed analysis. Although the two seismic zones studied – British Columbia and the Quebec City-Montreal-Ottawa corridor – cover only a small fraction of Canada’s total area, 40% of Canadians live in these zones.
Across Canada, many stakeholders are planning for and mitigating the risk of earthquakes. IBC commissioned the report to raise awareness and provide a valuable tool for governments, regulators, disaster preparedness organizations, the banking community, the insurance industry and the public.