News
AIR Releases New Earthquake Model for Canada | Canadian Insurance
www/news

AIR Releases New Earthquake Model for Canada

Updated tool will allow insurers to better assess potential losses

Catastrophe risk modeling firm AIR Worldwide announced today that it has updated its Earthquake Model for Canada, calling it “the most advanced tool for assessing potential losses” from seismic events.

Released just after the USGS updated its earthquake hazard map for the United States, the update will allow insurers and other stakeholders to assess potential losses from ground shaking, fire following earthquake, tsunami, liquefaction, and landslide for the Canadian market. It will also be a significant tool for compliance with OSFI Guideline B-9, AIR said.

Read: Earthquake Risk Increases for Many U.S. Homes

“The updated Earthquake Model for Canada has been extensively reengineered and offers significant enhancements,” said Dr. Jayanta Guin, executive vice-president, research and modeling, AIR Worldwide. “In addition to the ability to estimate losses from shake, fire following, and liquefaction, the release is the first in the industry to include fully probabilistic landslide and tsunami models for Canada.”

The Insurance Bureau of Canada selected AIR Worldwide to conduct the most comprehensive study of seismic risk in Canada ever undertaken. According to IBC, AIR’s study will help drive a national discourse on mitigation, financial preparedness, and emergency response.

Read: Canada Not Prepared for Major Earthquake: Report

“We are honored that IBC selected AIR to collaborate on this highly impactful and comprehensive study that will help raise awareness of earthquake risk throughout Canada,” said Dr. Guin. “It is a direct result of this collaboration that our newly updated Canada earthquake model provides the most complete view of seismic risk to residential, commercial, and industrial properties and infrastructure.”

The hazard component of the earthquake model features a comprehensively updated seismicity model using the latest historical earthquake catalog from the Geological Survey of Canada. AIR has also constructed a comprehensive kinematic model to estimate the accumulation of seismic energy in British Columbia’s Cascadia Subduction Zone, which is especially useful for estimating the recurrence rates for rare, very large magnitude earthquakes and source parameters for earthquakes capable of producing tsunamis.

Follow us on Twitter at @CITopBroker for the latest natural catastrophe news