XDI Announces Climate Risk Data on 34 million UK Addresses to Support Mortgage Lenders

Half a million high risk properties today, increasing to 1.9 million

The analysis suggests that climate exacerbated extreme weather risks may elevate insurance costs to unaffordable levels for many properties, leading to an increasing risk of financial distress and mortgage default.  In some cases there are likely to be reductions in property value raising the spectre of negative equity.

Five fold increase in Technical Insurance Costs

Rohan Hamden, CEO said “Many large banks now have the capability to identify and therefore avoid addresses where extreme weather and worsening insurance costs could give rise to default risk.  Without access to the same information, small and medium size lenders are potentially at risk of absorbing these assets, thus skewing the proportion of high risk addresses in their portfolio.”

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