Floods and financial stability: Exploring the role of sea level rise

How does sea level rise affect our economy and financial sector? This analysis explores the links between sea level rise, flood risk, and financial stability. Flood risk is relevant in the Dutch context from both a physical and a financial perspective. One fourth of the country lies below sea level and about half of its land surface is at risk of river or coastal flooding. Many households and companies reside in such at-risk areas. Any flood event would damage properties and affect livelihoods. As insurance coverage is often not available, such events could also impact financial institutions who have granted loans to those households and companies.