By Patrick Bouchard, Insurance Broker, CIP and RCCAQ Chair

In his analysis of New York City's official response in the aftermath of Hurricane Sandy, an American specialist has voiced concerns about Canada's lack of preparedness.

In his book Storm Surge, Prof. Adam Sobel of Columbia University notes that Hurricane Sandy's impact on New York City on October 29, 2012 could have been much worse. The US Northeast was prepared—but how would we have reacted in Canada?

 Prof. Sobel claims that Canada's level of preparedness is much lower than in the US. In an interview with the Journal de l'Assurance, he said: "It's quite incredible that there is little or no flood insurance in Canada. In the US, flood insurance, which is an area of federal jurisdiction, has been available for a long time, although the rates and premiums are still out of whack." 

The secret of success? Being prepared...

In the case of Hurricane Sandy, the worst was avoided because NYC was well prepared, thanks to the following:

• Investments aimed at protecting the integrity of infrastructure in the event of flooding.
• An effective official response.
• Good short-term planning, including the creation of refuge/evacuation sites.

Nevertheless, Hurricane Sandy claimed too many victims in the US and caused between $50 and $60 billion in damages (including direct and indirect economic losses).

Main shortcoming? Long-term planning

NYC should have allowed for more extraordinary measures over a longer period in order to get things back to normal faster. 

As in many other fields, if risks are assessed properly and clearly understood, they are easier to deal with. We will have to include these "new risks" in discussions with our clients. I encourage you to read the summaries of some very useful Canadian initiatives.

I also want to point that the RCCAQ is the only organization that offers training on how to best protect clients from earthquake with adequate coverage. This activity is currently available on-site and will be offered online beginning in the spring.

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