Wednesday, 14 September 2016

[wanabidii] Fault Lines: Earthquakes, insurance, and systemic financial risk

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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