WILLEMSTAD - Most financial institutions within the monetary union of Curaçao and Sint Maarten are aware of climate risks; however, there is insufficient attention to the potential impacts of events such as hurricanes and flooding on businesses. According to a climate risk survey, approximately three-quarters of participants rated these issues as low to moderately low on their agenda. This information comes from a report published yesterday by the Central Bank of Curaçao and Sint Maarten.
The report authors, Paloma Abbad and Gavin Ooft, noted that all respondents identified hurricanes and flooding as the primary climate-related risks for the financial sector. The vulnerability of the monetary union to extreme climate events became starkly apparent in 2017 when hurricanes Irma and Maria devastated Sint Maarten. Consequently, the loss ratio for insurers significantly increased between 2017 and 2019.
This lack of prioritization raises concerns about the readiness of businesses to withstand future climate-related challenges, prompting calls for greater awareness and proactive measures within the financial sector.