Fifty years ago, the Great Alaskan Earthquake shook Canada’s west coast triggering a tsunami, causing ground fissures and collapsing structures on Vancouver Island – but are insurers ready if another great quake strikes?
“So far, Canada has been fortunate but we are not immune,” says Bill Adams, vice-president of the western and pacific arm of Insurance Business Canada. “The question is not if, but when, the next major quake will happen. If a mega-earthquake strikes a densely populated area, the insurance industry would play a key role in the recovery.”
The IBC is currently researching the issue; last October it released a study on the impact of two possible major seismic events – one in B.C. and the other in eastern Canada. The B.C. scenario anticipated economic losses of $75 billion, including insured losses of $20 billion.
The 1964 tsunami travelled up a fjord to hit Port Alberni. Lasting just three minutes, the earthquake was the most powerful recorded in recent North American history and the second most powerful ever measured by a seismograph.
Other major quakes and tsunamis have wrought devastation around the world since then, says Adams, underlining the need for preparation here in Canada.
“In the last few years, earthquakes have hit many parts of the world – Chile, Haiti, New Zealand and Japan – with devastating consequences,” he says. “That’s why our industry has made preparing Canada for an earthquake one of its strategic priorities.” (continued.)
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And in light of the Auditor General of B.C.’s report on earthquake preparedness, Adams says the IBC is more committed than ever to working with governments and other stakeholders on the issue of earthquakes.
“According to Natural Resources Canada, Canada has a 30 per cent chance in the next 50 years of being hit with an earthquake,” he says. “Our industry agrees that it is time for regional and national conversations on how to prepare for a mega-earthquake. This is why we are pleased with the B.C. government’s announcement of a consultation on all aspect of earthquake preparedness.”
