Founding of the Earthquake damage organization (EDO)
July 2021 – The cantons, private insurance and cantonal building insurers are set to work together in the future. On 16 June 2021, they founded the Earthquake damage organization (EDO). This new organisation will play a key role in earthquake management. It actively supports the cantons in assessing the damaged buildings and estimating the costs of reconstruction. In this respect, the insurance sector provides its experience in determining damage and processing claims.
In Switzerland, a severe earthquake can happen at any time. According to the 2020 National Risk Analysis of Disasters and Emergencies in Switzerland carried out by the Federal Office for Civil Protection (FOCP), earthquakes as well as power shortages and pandemics are among the greatest risks that Switzerland faces. The full economic costs of an earthquake can exceed 100 billion Swiss francs. Besides the strength of the earthquake, the amount of damage is essentially determined by how quickly the catastrophe is managed and how rapidly societal and economic life can be brought back to normality.
The Earthquake damage organization (EDO) is set to begin operations in 2023. The SOE ensures that reconstruction can be swiftly initiated following an earthquake. After all, without a damage assessment, reconstruction is delayed causing economic costs to rise further. This is because the basis for making decisions on the financing of repairs would otherwise remain unclear. In the future, the EDO will provide the technical infrastructure and the basic necessary information regarding damaged buildings. Based on this and an onsite assessment of the situation, the competent authorities can decide whether the affected buildings can continue to be used after an earthquake. EDO experts will then inspect the buildings and put together an estimate of the repair or reconstruction costs. To provide this service, the EDO will coordinate and mobilise the necessary specialists such as engineers, architects and insurance experts. Only a nationwide organisation with broad support is able to provide the requisite expertise and determine the costs for reconstruction within a reasonable period of time.
The EDO originates from a public-private partnership project. It is funded by the cantons, cantonal building insurers and private insurers. Specialist units of the Confederation, including the Swiss Seismological Service at the ETH Zurich, the Federal Office for Civil Protection and the Federal Office for the Environment, are also supporting the EDO as well as ensuring coordination with federal earthquake preparedness measures. The EDO closes a gap in the capacity to prepare for an earthquake. The organisation will contribute substantially towards helping the economy and society to recover quickly after an earthquake.