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Climate risk gap puts data centre submissions under scrutiny

Insurance Business · last updated

The practical implication for brokers is that location and construction quality determine what coverage is available and on what terms, not just the headline insured value. Johanna Rohrer, risk analyst natural hazards and climate risks, and Gareth Hopkins, risk engineer, of HDI Global and HDI Risk Consulting said sites should be assessed using forward-looking climate data before selection. They identified emergency drainage overflows, elevated critical equipment, and compartmentalisation of key areas as targeted measures that can materially reduce loss exposure.