International Survey of Earthquake Insurance Guarantee Schemes

  • Erik Brown, Research Analyst, Global Risk Institute
  • Alexey Rubtsov, PhD, Senior Research Associate, Global Risk Institute
A model house leaning to the left as if about to fall over.

Executive Summary

Earthquakes can strike without warning near large population centres, threatening human life and inflicting massive physical and social damage. Low-probability, high-impact events of this kind can present unique challenges for risk management professionals. The primary underwriters to businesses and households, property and casualty (P&C) insurers are particularly exposed to natural disasters, with governments generally sharing the burden. In Canada, the Property and Casualty Insurance Compensation Corporation (PACICC) helps claimants get the coverage they need in situations where their insurer cannot pay. In light of efforts to build greater earthquake resiliency in the Canadian P&C market, the Global Risk Institute in Financial Services (GRI) has conducted an international survey of earthquake insurance providers and guarantee schemes, drawing insights relevant to potential future reform.