Last year, the U.S. saw a record-breaking 28 disasters that cost over $1 billion, including the Aug. 8 fires on Maui.
This year, 20 such disasters have already occurred, according to the National Centers for Environmental Information.
As a result, a group of lawmakers are calling on the nation's major federal banking institutions to proactively address the costs of disasters fueled by climate change.
A total of 11 members from Congress, led by Hawaiʻi Sen. Brian Schatz, have written a letter to the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to ask the agencies to assist private banks in preparing for climate-related financial risks.
"Climate-related disasters are increasing in both their frequency and severity, posing threats to the United States’ economy as insurers face rising losses and leave climate-vulnerable markets," the letter says. "We must ensure that our financial institutions understand and prepare for climate-related financial risk."
Read the full letter below:
