New Report Shows 92% of British Columbians Face Earthquake Risk
IBC urges federal action to improve preparedness and ensure financial resilience after a catastrophic quake
VANCOUVER, BC, Nov. 20, 2025 /CNW/ - British Columbia's newly released Disaster and Climate Risk and Resilience Assessment (DCRRA) report highlights the staggering toll a major earthquake would have on the province.
The report finds that 92% of the population of the province and 90% of provincial businesses are exposed to seismic risk. It goes on to note a magnitude-9 earthquake would:
- Result in total economic losses of $128 billion;
- Reduce economic growth by half and result in 43,700 jobs lost over the subsequent 10 years; and
- Bring the potential for human and economic devastation that exceeds the combined impact of all disasters experienced in the province over the past 200 years.
"This report makes clear what's at stake for British Columbians," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "It's a matter of when, not if, a major earthquake will occur in B.C., and this new tool from the province is a powerful illustration of the devastating impact such an event will have."
For decades, Canada's insurers have sounded the alarm about the impacts a devastating earthquake would have on British Columbia and the broader Canadian economy, and with good reason: Natural Resources Canada estimates that the province has a 30 per cent chance of experiencing a significant earthquake within the next 50 years.
The property and casualty (P&C) insurance industry has a strong stake in Canada's earthquake preparedness. While the industry is among the most well-capitalized globally, a catastrophic earthquake would exceed the capacity of even the most resilient insurance system and trigger ripple effects across the economy. IBC has long advocated for a federal solution that would allow the government to step in alongside insurers following a catastrophic earthquake – protecting people, businesses, and the economy while supporting recovery. Canada remains the only G7 nation with significant earthquake risk that lacks such a mechanism.
"A catastrophic earthquake would threaten the stability of Canada's financial system and stands among the greatest risks to our economic resilience," said Liam McGuinty, Vice-President, Federal Affairs, IBC. "That's why IBC welcomed the recent federal budget's acknowledgment of the earthquake risk facing Canadians and the Canadian economy."
The 2025 federal budget announces the government's intention to consult P&C insurers and other interested stakeholders on ways to ensure the stability of Canada's insurance system in the event of an extreme earthquake event.
"The federal commitment is an encouraging step, but it's just that – a first step," said McGuinty. "Canada must move swiftly to ensure British Columbians and the Canadian economy are protected from the financial fallout of a catastrophic earthquake. Canada's P&C insurers look forward to working with government to explore solutions at the earliest opportunity."
The DCRRA report draws some of its analysis from a 2016 Conference Board of Canada report, "Canada's Earthquake Risk: Macroeconomic Impacts and Systemic Financial Risk." IBC estimates that the figures would almost certainly be higher today, given British Columbia's continued population growth and construction activity in the last decade.
The Report also includes a new Hazard Insights Tool with an interactive map that can be used to better understand the different risks and hazards at the provincial and regional scales. The Hazard Insights Tool serves as a critical resource for emergency managers, planners and professionals working to strengthen the province's resilience.
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.
As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.
IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada
Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]
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