This publication urges policymakers to take several steps now to avert the risk earthquakes pose to the insurance industry in Canada. In fact, the fault lines from a major earthquake could quickly spread through the insurance industry and have a systemic financial impact. The steps taken for the prevention of another financial crisis as in 2007/08 has been to build resiliency and shock absorbers to minimise the impact of financial shocks on the real economy. Similar remedial efforts are required for earthquake risk.
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