North America

Increasing frequency and economic impact.

Climate change is “supercharging the increasing frequency and intensity” of extreme weather events across North America. Forecasting and early warning systems have improved however the financial damage caused by such events continues to rise.

Extreme weather events are linked to declining credit scores and mortgage performance, increased debt collection, inhibited access to credit and overall deeper debts - effects that persist or even worsen over time.

Most people at risk of climate events are without coverage: three-quarters of buildings flooded by Hurricanes Sandy, Irma, and Harvey had no flood insurance.

Banks lending to customers in climate vulnerable regions risk a significant proportion of their loan portfolio defaulting after a climate event. These loans are often secured on assets exposed to damage by the same event that led to the default.

Yokahu has developed parametric cover that protects both bank and customer from loan default. Providing bank customers with emergency funds at a time when their income may be lower and urgent expenses are mounting helps protect their loan and credit status, preventing default and the stress of additional costs.