Federal government takes an important first step to protect Canadians from the impacts of earthquakes

OTTAWA, ON, Nov. 4, 2025 /CNW/ – Today, the federal government released its budget. Following its release, Liam McGuinty, Vice-President, Federal Affairs, Insurance Bureau of Canada (IBC), issued the following statement:

“With today’s Budget, the federal government has signalled its intent to consult with Canada’s property and casualty (P&C) insurance industry on ways to ensure the stability of Canada’s financial sector and broader economy in an extreme earthquake event. This is a welcome development for the P&C insurance industry, the broader financial services sector, and Canadians.

For years, IBC has been calling for the federal government to help protect Canadians from the economic fallout in the event of a major earthquake. Canada is the only G7 country with a significant earthquake risk that lacks a formal government-backed financial backstop for earthquake insurance. Without a federal backstop, a major quake could trigger widespread financial instability.

Modeling shows that a major earthquake off the coast of BC would have staggering impacts on Canada: nearly $100 billion in total economic losses. In Quebec, a smaller earthquake could produce losses in the tens of billions of dollars. In either scenario, the economic and social repercussions would extend across the country, posing a foundational threat to Canada’s economy.

IBC is eager to partner with the government to quickly find a solution that will protect Canadians in the aftermath of a catastrophic earthquake and address the risks associated with a seismic event to the Canadian economy.”

About Insurance Bureau of Canada

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