Tag Archives: Loma Prieta Earthquake

The Need for Preparation and Resiliency in the Bay Area

With the recent August 24, 2014 M6.0 Napa Earthquake, the San Francisco Bay Area was reminded of the importance of preparing for the next significant earthquake. The largest earthquake in recent memory in the Bay Area is the 1989 Loma Prieta earthquake. However, in the event of a future earthquake, the impacts on property and people at risk are higher than ever. Since 1989, the population of the region has grown 25 percent, along with the value of property at risk, and according to the United States Geological Survey, there is a 63 percent chance that a magnitude 6.7 or larger earthquake will hit the Bay Area in the next 30 years.

The next major earthquake could strike anywhere – and potentially closer to urban centers than the 1989 Loma Prieta event.  As part of the commemoration of the 25th anniversary of the earthquake, RMS has developed a timeline of events could unfold in a worst-case scenario event impacting the entire Bay Area region.

In the “Big One’s” Aftermath


This black swan scenario is extreme and is meant to get the stakeholders in the earthquake risk management arena to consider long-term ramifications of very uncertain outcomes. According to RMS modeling, a likely location of the next big earthquake to impact the San Francisco Bay area is on the Hayward fault, which could reach a magnitude of 7.0. An event of this size could cause hundreds of billions of dollars of damage, with only tens of billions covered by insurance. Without significant earthquake insurance penetration to facilitate rebuilding, the recovery from a major earthquake will be significantly harder. A cluster of smaller earthquakes could also impact the area, which, sustained over months, could have serious implications for the local economy.

While the Bay Area has become more resilient to earthquake damage, we are still at risk from a significant earthquake devastating the region. Now is the time for Bay Area residents to come together to develop innovative approaches and ensure resilience in the face of the next major earthquake.