The province of British Columbia (B.C.) had recently looked into developing a “fast-response insurance solution” that would provide financial protection to its infrastructure in the event of an earthquake—in two months, the province could have itself municipal earthquake coverage.
According to Municipal Insurance Association of British Columbia (MIABC) chief executive officer Tom Barnes, the scheme could source up to $200mn of insurance cover within five years.
The
Globe and Mail reported that
Munich Re was among the various reinsurers collaborating with the MIABC in developing the municipal insurance product for local governments in the province.
Munich Re Canada chief executive officer Philipp Wassenberg remarked that the municipal earthquake insurance policy could be ready for use in two months.
Data from Natural Resource Canada highly suggests that the province of B.C. faces a 1-in-3 chance of a major quake occurrence within the next 50 years.
Although aid can be delivered to earthquake-stricken areas, a city’s infrastructure needs to be restored as soon as possible before it negatively impacts its citizens’ quality of life, said Barnes.
“If you can’t provide sewer and water to a neighbourhood, people can’t live there. If they can’t live there, they don’t want to pay their property taxes. And if they’re not paying property taxes, what are municipal governments going to do for money?” he explained.
An analysis of B.C. by the MIABC, in collaboration with reinsurers, found that nearly $97 billion of uninsured municipal infrastructure exists in the lower mainland, including the city of Vancouver.
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