Editing IPCC:AR6/WGII/Chapter-11 (section)

==== 11.3.8.2 Projected Impacts ====

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Risks for the finance sector are projected to increase ( ''medium confidence'' ). The potential impact of increased coastal and inland flooding, soil desiccation and contraction, fire and wind could lead to higher insurance costs, reduced property values and difficulties for some customers to service loans ( [[#CBA--2018|CBA, 2018]] ). Under a high-emissions scenario (RCP8.5), estimated annual losses to home-lending customers may increase 27% by 2060, and the proportion of properties with high credit risk may rise from 0.01% in 2020 to 1% in 2060, assuming no portfolio changes ( [[#CBA--2018|CBA, 2018]] ). In New Zealand, weather-related insurance claims between 2000 and 2017 totalled NZD$450 million, 40% of which was due to extreme rainfall. Using six climate model projections of extreme rainfall, the insured damage is projected to increase by 7% (RCP2.6) to 8% (RCP8.5) by 2020–2040 and 9% (RCP2.6) to 25% (RCP8.5) by 2080–2100, relative to 2000–2017 ( [[#Pastor-Paz--2020|Pastor-Paz et al., 2020]] ). By 2050–2070, tropical cyclone risk for properties not in flood plains or storm surge zones in south-east Queensland may increase by 33% under a 2°C scenario and by 317% under a 3°C scenario for properties in flood plains and storm surge zones ( [[#IAG--2019|IAG, 2019]] ).

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