Seismic risks in Canada

Seismic risks in Canada
 

 
As Hurricane Sandy threatened the East Coast, a large earthquake rocked the Haida Gwaii Archipelago (formerly known as the Queen Charlotte Islands) in British Columbia.

This earthquake reached a surprising magnitude of 7.7 on the Richter scale but caused no damage due to its remote location (about 730 km northwest of Vancouver and 230 km southwest of Prince Rupert) - see map below for epicenter location. Of all those that have rocked North America since January 1, 2000, this latest earthquake is the second in importance, after the one that occurred on November 3, 2002 in Denali, Alaska.

Seismic risks by region
According to the map above, earthquake risks are present not only in southwestern British Columbia, but also in eastern Canada, around the St. Lawrence Seaway and in the corridor between Montreal. and Ottawa.

On the west coast of Canada, we are preparing to face the "Big One", a term used by the media to describe the next subduction in the Cascadia area, during which the Juan de Fuca tectonic plate will sink below. that of North America. According to geological studies, this movement generally occurs every 300 to 800 years or so (the last occurring in 1700).

Each subduction (mega-earthquake) is accompanied by very violent earthquakes, which usually reach 8 or 9 on the Richter scale. These earthquakes often cause significant movements of land mass (both horizontally and vertically) and, since the "Big One" is predicted to occur at sea (southwest of Vancouver Island ), it is almost certain that it will trigger tsunamis. Although, from a unique perspective, the damage caused by the tremors will be widespread, it will be less than if the earthquake had been weaker but closer to the land.

In the east, earthquakes are less likely and should be less powerful. However, if they do occur, they are expected to affect a fairly large area due to the geology of the North American tectonic plate. Many believe that an earthquake in Eastern Canada could have serious consequences for Canadians due to the reduced rate of energy dissipation (attenuation of seismic waves), the age of the building stock. region and, until recently, the lack of seismic design requirements in the building code.

The seismic risk does exist in Canada. However, it differs depending on the region of the country. It is very important that you know the specific risks to which you are exposed so that you can reduce or minimize the consequences (or even transfer them through insurance).

Earthquake risks for marsh's personal services customers

Marsh Personal Services currently negotiates residential insurance for more than 35,000 distinct properties in Canada and the regions with the highest concentration of reported value are Toronto, Vancouver, Calgary, Edmonton and Ottawa.

If we overlay a map showing the location of current Marsh Personal Services customers on a map showing the earthquake risk in Canada, we get a clear picture of the danger to which your property is exposed.

Canadian distribution of Marsh Personal Services clients and seismic risk
The earthquake risk derived from the above image is based on the assumption that the ground is firm. If a building is built on soft ground, the risk increases by one level. Likewise, if a building is built on hard rock the risk decreases by one level.

Based on our analysis, we estimate that 18% of the total value of Marsh Personal Services program assets are located in areas of British Columbia where the risk rating is “high” or “very high”. . And yet, only less than 50% of these customers choose to purchase earthquake insurance.

Properties rated as "moderately high" are primarily located in the Ottawa area. Our records show that less than 8% of these policyholders have chosen to purchase earthquake insurance.

It is inevitable that one day a major earthquake will strike a populated area of ​​our country. Although a comprehensive property insurance policy covers the risks of damage caused by fire, theft or other perils, damage caused by an earthquake is covered by specific insurance that is not usually included in property policies. based.