TRS.20.022 – Financial Adaptation and Resilience to Weather Induced Damages in the Economy (FAR-WIDE)

Route: Towards resilient societies

Cluster question: 008 How is the climate changing, including extreme weather, and what impact will those changes have?

As a result of climate change, a low-lying country like the Netherlands will face rising sea levels, increases in precipitation and more water in rivers, as well as more damages from hailstorms and windstorms. Direct property losses and indirect economic damages from extreme weather events can seriously affect the financial position of businesses and households and consequently, the balance sheets of their insures and banks. Improving our resilience in order to cope with, and limit, extreme weather risks requires significant, focused investments to mitigate the impact of climate change and smart insurance to alleviate its consequences. Without a proper understanding of the financial risks of climate change and a resilient Dutch financial sector, consumers and business face higher insurance and credit risk premiums and may be unable to limit the climate change risks they are exposed to. Recent reports make an inventory of relevant climate change risks in the Netherlands for the financial sector, reveal important knowledge gaps in understanding these risks and managing them. This research project fills this gap by improving our understanding of the consequences of changing extreme weather risks for the financial sector and its clients, and designing solutions to limit these impacts.

Keywords

climate change, extreme weather, financial impacts, resilience, Risk

Other organisations

Achmea, AON, Deltares, DNB, KNMI, ONL, Sustainable Finance Lab, Unie van waterschappen, Utrecht University (UU), Verbond van Verzekeraars, VU-IVM

Submitter

Organisation Maastricht University (UM)
Name Prof. Dr. Mark Sanders
E-mail m.sanders@maastrichtuniversity.nl
Website https://www.maastrichtuniversity.nl/p70002295