Insurance Bureau of Canada Calls for ‘Heightened Cooperation’ on Quakes

January 8, 2008

Central Europe isn’t the only place in the world that faces earthquake threats (See related article). The Insurance Bureau of Canada has issued a call for the creation of an ongoing working group between the insurance industry and the provincial government of British Columbia to address the possibility of a major earthquake.

“Two strong quakes took place south of the Queen Charlotte Islands on Saturday,” the IBC noted. “They are a stark reminder that much of the Lower Mainland and Vancouver Island are also seismically sensitive areas.”

Mark Yakabuski, IBC President & CEO, called on Canada’s P/C insurance industry and the B.C. government “to work more closely together to review best practices in other earthquake-prone zones around the world on an ongoing basis to make sure that British Columbians benefit from the latest knowledge about managing earthquake hazards.

“Methods to protect citizens from major earthquakes have improved substantially around the world in recent years and we need to make sure that B.C.’s policies reflect the best that is out there,” he added.

Lindsay Olson, IBC’s Vice-President, British Columbia, Saskatchewan & Manitoba, indicated: “Part of this effort needs to focus on how best to disseminate information to the public. IBC is already committed to public education on earthquake risk and will be accelerating these efforts in the months to come.

“It is estimated that a major earthquake in Vancouver would result in damages of more than $30 billion,” she added [ the Canadian $ and the U.S. $ are of roughly equal value]. “Of that amount, about $6 billion would be insured damages. The exposure faced by B.C. residents is huge and the insurance industry wants to work with the government to manage this danger in the best possible way.”

Source: Insurance Bureau of Canada – www.ibc.ca

Topics Catastrophe Market Earthquake Canada

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