Canadian Underwriter
Feature

F4 tornado in downtown Toronto would cause $4 billion in losses


May 31, 2011   by


Print this page Share

If an F4 tornado – which packs wind speeds of between 333 km-h and 418 km-h – ripped through downtown Toronto, it could potentially cause up to $4 billion in losses, said Matthew Nielsen, senior product marketing manager of natural catastrophe and portfolio solutions at RMS.

Nielsen made the observation at a seminar on convective storm models for the Canadian market at RMS’s Canadian catastrophe model seminar in Toronto on May 24, 2011.

Nielsen based his estimate in part on damage caused by large-scale tornadoes in Tuscaloosa, Ala. on Apr. 27, 2011 and Joplin, Miss. on May 22, 2011. He described these as catastrophic events causing “billions” in losses.

“Tuscaloosa is a city with a population of approximately 100,000, and Joplin was about 50,000,” he said. “Compare that to the types of exposures you have in Toronto, and the number of people you have here [approximately 2.5 million], and it can be a very, very different loss.”

For an F4 tornado in Toronto, RMS predicts about $4 billion in damage.

“This is one example of what could happen from a large event,” he said. “We haven’t seen this type of event before. But, it’s similar to what we say for earthquakes: ‘Just because you haven’t seen an event, doesn’t mean we shouldn’t think about these potential events’.”


Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *

*