The XDI team

Insurance costs are soaring for home owners in Australia and New Zealand as climate change leads to floods, fires and storms, pushing up inflation and threatening financial stability, experts say. “As premiums rise and coverage is withdrawn from high-risk areas, we can expect to see impacts on asset prices and the prosperity of communities,” said Philip Tapsall, head of corporate and finance sector engagement at climate risk experts XDI. “Without stronger action to reduce emissions and build resilience, we could see this have implications for financial stability.”

Tune in to this episode of The Elephant In The Room Property Podcast to hear XDI’s Philip Tapsall discuss climate impacts on property value, insurability and safeguarding investments.

XDI (Cross Dependency Initiative) unveiled the XDI Climate Risk Hub at New York Climate Week, introducing a comprehensive platform for on-demand climate risk analysis across industries and geographies.

As Tropical Cyclone Alfred approaches landfall in southern Queensland, physical climate risk analysis company Climate Valuation (part of the Climate Risk Group) is raising concerns that homeowners in affected areas may face more costs than just repairing damage to property from flood, wind and coastal inundation. Insurance premiums could rise as well. 

Offloading climate risk can have unintended consequences for smaller banks and communities but effective regulation can avert those problems, says Philip Tapsall of XDI.

XDI is today launching the XDI Climate Risk Hub from New York Climate Week, an innovative platform that provides on-demand, physical climate risk analysis for financial institutions, companies, and governments worldwide.

The 2024 XDI APAC REIT Physical Climate Risk Report analyses 2,134 assets held by the 20 largest (by market capitalisation) REITs in Japan, Australia, Singapore and Hong Kong to provide a snapshot of climate change risks to global real estate investments. It also ranks these 20 REITs - who have a combined market capitalisation value of more than US$142 billion - according to their physical climate risk.

Prioritising climate adaptation is not just an environmental imperative but a strategic economic decision.

The XDI Gross Domestic Climate Risk dataset is a direct response to demand from investors for data on sub-sovereign and regional risk. The capability and results provide a new level of detail and sophistication in physical climate risk analysis that can be used to consider the effect of climate change extreme weather on sovereign, sub-sovereign and corporate debt, and builds on growing concern about these issues raised by the global finance sector.

New global analysis by XDI has identified regions around the world vulnerable to significant damage from tropical cyclones and hurricanes, as stronger winds fueled by climate change push further towards the poles into areas previously considered low risk.