Insurers are seriously concerned about climate damage caused by rising sea levels, an increase in drought and more extreme rainfall. These weather extremes are the biggest climate risks for the Netherlands. The Association advocates a strong national and international climate policy.
Because extreme weather is causing more and more damage to, for example, houses, commercial buildings and vehicles. The Association investigates how insurers and society can respond in the best possible way to the changing climate. In order to keep insuring climate damage affordable and insurable, non-life insurers are working on prevention. After all, you don't have to repair damage that doesn't occur, which saves a lot of suffering, time and money.
We are committed to awareness and action perspectives. The Association develops climate-related tools and supports insurers with webinars, events and papers with renowned knowledge institutions. Insurers are constantly incorporating the new insights into their policies and products.
It won't surprise anyone any more: Damage from the increase in extreme weather is getting higher and higher. This is also evident from our Climate Damage Monitor.
By focusing on prevention and awareness, we try to prevent climate damage as much as possible and limit it in the future. With the monitor, the Association contributes to the public debate on the costs of climate change. The monitor provides insight into the risks that consumers and entrepreneurs run: "If we do nothing, it will cost all Dutch people much more. Not only in terms of money, but also in terms of the feeling of security, because the impact of weather damage to your home and your immediate surroundings is enormous." The new KNMI climate scenarios are expected in 2023. Early knowledge of risks can better assist clients in their longer-term decisions.
By adapting to the climate and preventive measures, up to 50 percent of these damages can be prevented! For all initiatives to insure climate-related damage, the Association needs the government. Together, we can raise awareness and prevention among citizens and businesses.
The Netherlands is facing the enormous task of making our country climate-proof, such as adapting buildings and our landscape. This is where the government can make a lot of profit with the financial sector and insurers. For example, by choosing which areas to build on or not, taking into account the water level and the risk of flooding. In areas where construction is possible, this must be done in a climate-adaptive way.
Insurers are happy to use their knowledge about prevention and risks for this. As a permanent discussion partner of the government on the design of the Netherlands, we monitor the (future) insurability of vulnerable areas in the Netherlands. Among other things, the Association participates in the working group on Climate Adaptation for the Financial Sector, together with banks, investors and government parties.
Knowledge leads to new insights. That is why the Association develops and shares knowledge and expertise with, among others, the Royal Netherlands Meteorological Institute (KNMI ) and the Institute for Environmental Studies at VU Amsterdam. Prevention and awareness require a cross-sectoral approach.
The Association develops various tools that help to gain insight into climate risks and provide action perspectives.
Together with other organisations, the Association is increasing its understanding of climate risks. The tools below visualise the consequences of climate change and show what you can do about it.
Would you like to know more about what climate change means for non-life insurers and their customers? Watch the webinars:
