Canada isn't ready for a major earthquake, the Insurance Bureau of Canada says.
In a peer-reviewed study released Tuesday, the board modelled two earthquakes that could happen.
If a 9.0-magnitude earthquake hit off the West Coast, the country would see economic losses of almost $75 billion.
If a 7.1-magnitude earthquake rocked the Quebec City-Montreal-Ottawa corridor, the report said the overall economic losses would total $61 billion.
The report says 40% of Canadians live in the two areas where a major earthquake could feasibly occur.
"If a mega-earthquake should strike in a densely populated area, insurance alone will not pay for all the damage. Governments and consumers have a role to play," IBC president and CEO Don Forgeron said.
The report says there is a 1-in-500 chance of a mega-earthquake. Losses can be mitigated by building more resilient buildings and infrastructure, the report says. It also calls on governments to create a national response plan.