What and why
The climate risk score gives you a single number from 0 to 10 that shows how exposed a property is to climate risk. This article explains how the number is calculated so you can understand what's behind it and explain it to others.
How it works
The score is built on four principles:
Serious risks weigh more. We use a scale where high risks carry significantly more weight than low ones. A single very high exposure will always outweigh several low exposures combined, because that reflects the reality of climate damage: one severe event can have far greater consequences than many minor ones.
Grounded in real insurance data. Each hazard is weighted based on historical insurance claim data. Hazards that have historically led to higher costs have a greater impact on the final score. This ties the number to actual financial consequences, not just theoretical exposure.
Peak risks drive the score. The most impactful hazard is identified as the "peak driver" and gets additional weight. This ensures the most dangerous threat stays visible in the final number, while other risks are captured as a secondary, cumulative factor.
Proprietary formula. These weighted inputs are processed through our formula to return a final value between 0 and 10. This ensures the result is standardized and easy to compare across an entire portfolio.
The score falls into three ranges:
0.0 to 3.3 (low risk). Minimal exposure. Current risks are unlikely to cause significant financial or physical disruption.
3.4 to 6.6 (medium risk). Moderate exposure. One or more hazards are present that could impact long-term value or operational costs.
6.7 to 10.0 (high risk). Significant vulnerability. The property is exposed to high-impact hazards with potential for severe financial consequences.
Good to know
The score shows exposure, not a prediction. A high score means the property is in an area where hazards could occur, not that damage is imminent.
The score does not average risks. This is an intentional design choice. Averaging would hide dangerous outliers behind a moderate number. The peak driver approach ensures that a property with one critical hazard scores appropriately high, even if all other hazards are low.