Joining forces of the Dutch Association and the Royal Netherlands Meteorological Institute (KNMI) to combat climate damage

Prevent damage by warning of the arrival of bad weather as early as possible. This is the core of the collaboration between the Dutch Association of Insurers and the Royal Netherlands Meteorological Institute (KNMI). "But it encompasses much more," said Richard Weurding, general director of the Association, who today signed this collaboration, which is very logical for both organisations, together with Gerard van der Steenhoven, general director of the Royal Netherlands Meteorological Institute (KNMI).

"By combining the data from the Royal Netherlands Meteorological Institute (KNMI ) with the national risk and damage figures from the Association, we can not only better prepare for changing weather extremes," Weurding emphasises, "but also gain insight into and work on solutions to prevent damage caused by extreme weather as much as possible. In addition, insurers can share this knowledge with customers and their advisers. Everyone benefits from that, especially when you consider the additional suffering that damage causes." Weurding is referring to the extreme hailstorms and storms that have already caused hundreds of millions in damage over the past five years, but also to flooding and drought. "The blow can hit entrepreneurs particularly hard: the material damage is often insured, but the company is sometimes shut down for weeks while the costs continue."

Van der Steenhoven also sees great advantages in the collaboration with the Association: "This collaboration allows us to increase the impact of our weather warnings. At the same time, we receive feedback on the effectiveness of our observations and warnings, which allows us to further improve our services to save society as much damage as possible."

Storm damage

Based on claims submitted, the Dutch Association of Insurers can map out how much damage a storm has caused within a few months. This mainly concerns comparable insured damage on the contents, home and car insurance. As a rule, the total damage is even higher. This includes damage to greenhouses, crops on the land, transport, business interruption and infrastructure. "By warning of extreme weather even earlier, insurers' customers can prepare for it and take preventive measures. That's how we keep the damage manageable," says van der Steenhoven.

Weurding can confirm this: "For example, the damage caused by storm Ciara at the end of last year turned out to be a lot lower due to timely warnings, including by insurers. The Early Warning Center of the Royal Netherlands Meteorological Institute (KNMI) pays for itself more than once for Dutch society." "And that is exactly what we want to achieve together," Van der Steenhoven adds.

Measuring the impact of climate change

To develop policy in the field of climate change, you need to know what its impact is. In collaboration with Wageningen University, the Royal Netherlands Meteorological Institute (KNMI) and Climate Adaptation Services, the Association's Data Analytics Centre (DAC) will present the Climate Monitor in March. This monitor bundles drought, heat, wildfires and extreme precipitation data with Dutch claims data from insurers. This gives us insight into the current impact of various weather events on the damage in the Netherlands. Insurers and other financial institutions are also very curious about the KNMI Climate Signal that will be published in the autumn. This report provides a first interpretation of the new IPCC report on climate. The new KNMI climate scenarios are expected in 2023. Early knowledge of risks can better assist clients in their longer-term decisions.

Insurers in action against climate change

In recent years, climate (change) has become an increasingly important theme within the insurance sector. Check the Climate and Investment Policy webpage to see what actions insurers are taking to combat climate change.

Also watch the video below of the drawing moment: