Financial Sector Takes Coastal Risks Seriously.....NOT!

Waves break around a destroyed roller coaster in Seaside Heights, New Jersey, on Nov. 16, 2012. Photographer: Mario Tama/Getty Images

An interesting article from Bloomberg about the reality in the finance sector regarding their perception of risk from sea level rise. We hear lots about the insurance and bond underwriting sectors taking these risks seriously. We hear people say that the financial sector will begin to withdraw from risky coastal regions.

The reality..?

From the article: " When asked by Bloomberg, none of the big three bond raters could cite an example of climate risk affecting the rating of a city’s bonds."

And the sea level rise risk on the Jersey Shore, recently decimated by "superstorm" Sandy? -  "'It didn’t come up, which says to me they’re not concerned about it,' says John Bartlett, the Ocean County representative who negotiated with the rating companies. Both gave the bonds a perfect triple-A rating."

One interesting note is that Moody's has been nosing around the Hampton Roads region, asking localities what they are doing about sea level rise.  See a sample response from the City of Virginia Beach.