In a recent report on the threat flood disasters pose to the Netherlands as a country particularly vulnerable to climate risks, KPMG highlights the potential for catastrophe bonds to be an instrument that can help in maintaining the insurability of climate risks in an increasingly challenging environment.
The KPMG researchers note that flood events that affected the country in recent years have demonstrated how vulnerable the Netherlands is, driving impacts to business operations, customers and Dutch society as a whole.
“As a low-lying delta, the Netherlands is vulnerable to climate change. Rising sea levels, extreme rainfall and prolonged periods of drought lead to a growing number of claims. This not only leads to higher costs, but also raises fundamental questions about the future insurability of climate risks,” the report explains.
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