Major earthquake could disrupt far more than the Port of Vancouver, Swiss Re executive warns
Insurers say a Cascadia megathrust event could hit terminals, the airport, highways, rail and utilities across the Lower Mainland at once.
A major earthquake disrupting the Port of Vancouver is not a distant hypothetical, James Gasco, head of Canada at Swiss Re Corporate Solutions, told Insurance Business in an interview published on Wednesday.
"The Port of Vancouver sits within the influence zone of the Cascadia Subduction Zone, which is capable of generating a magnitude 8 to 9 megathrust earthquake," Gasco said. He said a major event could affect port terminals, Vancouver International Airport, highways, rail corridors, utilities and distribution centres across the Lower Mainland at the same time.
"Even a partial loss of capacity could create cargo backlogs, force goods to be rerouted, increase transportation and storage costs and create shortages or delays for businesses that depend on the gateway," he said.
Gasco said companies far from the physical damage could still face contingent business interruption, contractual penalties, lost sales and higher costs if a supplier, customer or logistics partner relies on the port.
Earthquake risk was also a central theme of a fireside chat between OSFI Superintendent Peter Routledge and Insurance Bureau of Canada CEO Celyeste Power at this year's National Insurance Conference of Canada, the publication reported.
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