Around one in seven homes throughout Victoria face substantial hazards relating to climate and risk exposure, suggests research by CoreLogic and Munich RE.

The research analysed 2.5 million residential properties to assess their individual climate hazard ratings and risk scenario outcomes.

It modelled a range of climate risk scenarios and outlined Victoria’s hazard profile and overall risk level for properties exposed to bushfire, drought, precipitation and sea level rise. It quantified the value and volume of properties exposed to different climate hazards and assigned standardised risk ratings.

Key insights include:

• Climate change hazards: Almost 9% of Victorian households are at very high risk of climate hazards, with another 8% at high risk. This is equivalent to a combined estimated property value of $277 billion at risk.
• Bushfires & river floods: Bushfires and river floods pose the greatest threat for properties with a high or very high risk of exposure to climate hazards. The great majority of Victorian households, around 80%, are at medium risk, whilst only a fraction of properties present with low or no risk.
• Sea level rise: Sea level rise will exacerbate coastal erosion across many parts of the coast.

CoreLogic’s analysis provides a standardised assessment of future climate change risk that could affect individual properties across Victoria. Future scenarios indicate that both bushfire and flood risks are simultaneously likely to be on the rise across the regions due to drier environments but also increasing precipitation. Armed with this information, businesses can employ a sophisticated approach to quantifying climate change impact, enhancing risk management and making informed decisions.

More information here