A study commissioned by the Insurance Bureau of Canada projected that a 9.0-magnitude quake 75 kilometres off the coast of Vancouver would result in $95.6 billion in losses — a catastrophe that could have knock-on effects for the wider Canadian insurance industry.
Why it matters: A massive earthquake hitting Canada’s West Coast isn’t just a hypothetical. The Cascadia subduction zone — a region from California to Vancouver Island where two tectonic plates meet — is estimated to produce a devastating quake every 200 to 800 years.
- The last “Big One” hit in 1700, meaning Vancouver is due. One seismologist told CTV News the odds of it happening in the next 50 years are 10% to 15%.
- But there’s no exact way to predict earthquakes so it could, theoretically, rear its ugly head at any time.
Big picture: Canada has been bolstering its earthquake preparedness. This spring, it rolled out a new early warning system in B.C. that can give alerts “tens of seconds” in advance of “strong shaking.” While that doesn’t sound like a lot, it could be enough time to save lives.
What’s next: Seismologists say there’s still more work to do when it comes to safeguarding infrastructure. Meanwhile, insurers have been lobbying the feds to develop a national earthquake backstop to support the industry.—QH