Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future...

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Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake Risk Applications Risk Management Solutions Newark, CA Joint BARCfirst-BENS-BRMA Infrastructure Symposium June 25 th , 2009

Transcript of Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future...

Page 1: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

Bringing Science to the Art of Underwriting™

TM

Welcome to Earthquake Country: Impact of future quakes

Mary Lou Zoback, Ph.D.Vice President, Earthquake Risk ApplicationsRisk Management SolutionsNewark, CA

Joint BARCfirst-BENS-BRMA Infrastructure Symposium June 25th, 2009

Page 2: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

1989 M6.9 Loma Prieta simulation – Brad Aagaard, USGS

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Available at http://earthquake.usgs.gov/1989

Page 3: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

1906 M7.9 simulation – Brad Aagaard, USGS

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Available at http://earthquake.usgs.gov/1906

Page 4: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

FORECAST:

Major earthquake likely in the next 30 years

Page 5: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

Major Faults in the San Francisco Bay Area

Page 6: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

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TM

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Measuring plate motion directly

with GPS

Page 7: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

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Page 8: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

Page 9: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

Mean Recurrence Past 12 quakes

165 ± 61 yrs

Past 5 quakes138 ± 58 yrs

Past 9 quakes 151 ± 64 yrs

Page 10: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

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18,

(1836-1906)70

Page 11: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

FORECAST:

Major earthquake likely in the next 30 years

Page 12: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

Past 5 quakes

1906 M7.9 simulation – Brad Aagaard, USGS

Silicon Valley perspective

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Available at http://earthquake.usgs.gov/1906

Page 13: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

Simulation of the 1906 Earthquake (Shawn Larsen, Lawrence Livermore National Lab)Directivity =

Energy focused in direction of fault rupture

Page 14: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

1906 - The Big One The Bad One(Shawn Larsen, Lawrence Livermore National Lab)

Page 15: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

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Vulnerable to floods - 1986

California’s Levee Problem strong shaking causes liquefaction and collapse Bay salt water rushes in shuts down drinking water for 2/3 Californians

(20-30% S CA water supply)

Torres et al. (2000)

Sacramento

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CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

WHO WILL PAY?

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Page 17: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

CONFIDENTIAL© 2008 Risk Management Solutions, Inc.

TM

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HurricanesPast

Quakes Quake Scenarios

$0.0

Historic losses from public records, scenario losses from RMS RiskLink 9.0

Page 18: Bringing Science to the Art of Underwriting™ TM Welcome to Earthquake Country: Impact of future quakes Mary Lou Zoback, Ph.D. Vice President, Earthquake.

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TM

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HurricanesPast

Quakes Quake Scenarios

$0.0

Historic losses from public records, scenario losses from RMS RiskLink 9.0