24500 – APN Climate-Risk Asset Devaluation Index™

The APN Climate-Risk Asset Devaluation Index™ reads the climate-related cost pressure bearing on residential property: how far physical climate hazards are running above their historical norms, and how fast the cost of insuring homes and their contents is rising. Higher readings mean more pressure.

It is a national time series, the equal-weighted mean of two components, each standardised against its own history. It is one of the four branches of the APN Sovereign Policy Composite Index™ (24800).

Both components enter as they read. The APN Regional Green Premium Uplift™ / Brown Discount™ (24520) has no structured Australian dataset and does not enter the index.

The two components move largely independently: their correlation is 0.07 across the 144 quarters from September 1990. Each therefore adds information the other does not carry.

At +0.3838σ in the June quarter 2026, the index sits above its centre, at position 75.5. Climate hazards are running above their norms, and insurance price growth has picked up over the past three quarters after slowing through 2025.

The index rose to +1.6088σ in March 2024, its highest since March 2001, when insurance price growth was at its fastest in more than two decades. It eased to +0.0248σ in December 2025 as premium growth slowed. Its highest readings on record came in 2000, when premiums rose by up to 32% in a year around the introduction of the GST.

• Timing. The climate component reads climate seasons, and its autumn season ends in May; the insurance component reads calendar quarters. The two are about one month apart in each quarter. The climate component’s season is dated to the quarter in which it ends.
• Insurance includes motor cover. The CPI Insurance class covers motor vehicle and compulsory third party insurance as well as home and contents; no published index isolates home insurance.
• A missing market-pricing component. The branch was scoped with a measure of how property prices reflect climate exposure (24520). No Australian dataset supports it, and the index composes on the two components that have one.
• Ranking. The index is ranked over the 144 quarters, from September 1990, in which both components are present. Earlier quarters carry the climate component alone and are not ranked.