Location data is redefining risk in the conveyancing sector

The risks extend beyond physical damage to properties caused by severe weather events like heatwaves, storms, and flooding. There’s also a wider economic impact driven by uncertainty, requiring new approaches to maintain financial stability. Climate change is increasingly affecting real estate - not just through flooding and rising sea levels, overheating homes or subsidence, but also through transition risks which can impact the property’s value and marketability.

To respond effectively, insurers need more than historical data and forecasts. They require granular, location-based insights to measure, predict and apportion risks, and build a resilient framework. Geospatial data providers like Ordnance Survey (OS) are helping to bridge this gap by offering detailed, location-based intelligence that supports climate risk modelling.

With enhanced location data and improved analysis of climate risks, the conveyancing industry will be better equipped to insure, sell, let, develop, or finance property in a changing environment—while aligning with the Law Society’s climate change practice note from May 2025 on how to effectively address climate-related risks in property transactions.

Insurers risk losses from underpriced premiums designed to attract customers, while others risk going out of business if they raise prices faster than the market can endure. This challenge is compounded by the growing need for more accurate, property-specific pricing rather than relying on broad, postcode-level pricing that doesn’t take into account variations in building type, age, and vulnerability.

Breaking the tragedy of the horizon

Mark Carney, former Governor of the Bank of England, described climate change as the “Tragedy of the Horizon”—a market failure where the long-term impacts of climate change fall outside the typical decision-making window of financial institutions.

To break this cycle, Carney called for better disclosures, improved risk tools, and stronger policy frameworks. OS data supports this vision by providing the geospatial intelligence needed to assess both physical and transition risks.

Flooding, wildfires, and declining property values all contribute to economic risk. If asset prices fall, the knock-on effects can ripple through the economy, affecting government policy and financial stability.

By using predictive analytics and geospatial tools, insurers can make more detailed assessments of where protection is needed, helping to bridge the protection gap.

For example, if insurers can accurately map wildfire risk, they can apportion risk more precisely and offer tailored policies to customers based on their specific exposure.

Financial institutions are expected to manage both operational and financial risks, including those related to climate. Effective risk assessment and management will help banks and insurers build resilience, make better informed decisions, and identify investment opportunities that drive climate resilience and support economic growth.

Climate change and the built environment

The UK’s housing stock — much of it built for colder climates — is struggling to cope with rising temperatures. Around 20% of homes are already at risk of overheating, particularly older buildings with poor insulation and limited ventilation. By 2050, this figure is expected to rise to 90% according to the Climate Change Committee.

Urban heat islands, where cities like London can be up to 5°C hotter than surrounding areas, intensify the problem - especially for older homes with solid walls and poor airflow, and flats with limited ventilation.

For banks and insurers, this isn’t just a public health issue. Heat stress, subsidence, flooding, and coastal erosion all threaten the insurability and value of property assets.

There is an urgent need for retrofitting and climate-resilient design in both new and existing homes, particularly in view of the government’s target to build 1.5 million homes.

Property owners will also need to consult with insurance brokers to determine which buildings insurance policies cover losses caused or exacerbated by climate change.

A new layer of insight

New datasets are due to be released and added to the OS National Geographic Database (NGD), such as physical state of buildings which gives you detailed information on the physical condition and structural state of buildings across Great Britain. This data allows insurers to identify vulnerable properties with greater precision, improve underwriting and pricing models.

Map Impact is enabling screening of emerging climate risks that are now becoming more recognised as potential critical factors impacting individuals and financial institutions. One example is Map Impact’s HeatView tool which provides a score indicating a property’s susceptibility to heat stress during a heatwave. This helps stakeholders across the entire property lifecycle understand their exposure and consider mitigation strategies, such as adding green or blue infrastructure around their properties.

Together with OS partner Martello, Map Impact provides screening for wildfire, drought, and heat risk for property legal professionals. Martello is one of the only providers currently aligned with the Law Society’s climate change practice note, helping conveyancers and homebuyers navigate the growing complexity of climate-related property risks.

Using OS data, it extracts land use and features, such as contaminated land and mining shafts. This location intelligence is then layered with expert human analysis or referred to environmental risk specialists who can then verify technical documents or conduct bespoke assessments.

Martello treats historic maps not just as reference material, but as raw data to be analysed. For example, a homebuyer may not know if the property was built over a former gas works, or whether safe soil and membranes were properly installed by the developer. Martello also partners with experts to provide on-the-ground insights, in addition to automated checks, giving conveyancers a detailed view—such as whether a property has steps up to the front door, which can mitigate flood risk.

This not only reduces liability but provides a clearer picture of the environmental risks associated with a property. By combining automated data analysis with human expertise, Martello is already delivering at scale for conveyancers and helping the sector adapt to the realities of climate change.

ArchAI works with Martello to integrate historic land use data with modern geospatial intelligence, using machine learning to automatically extract features like filled-in ponds, railway cuttings, and industrial sites. These insights help identify areas at risk of subsidence and environmental hazards — especially in regions with a legacy of industrial activity. Former pond sites, for example, pose contamination and subsidence risks. As climate change drives more frequent droughts and heavy rainfall, these areas can experience ground shrinkage and unstable soil conditions, increasing the risk of structural damage. Accurately mapping such features is essential for long-term climate resilience in land development and infrastructure planning.

Dr Iris Kramer, Founder of ArchAI, added: “A lot is hidden in the landscape – we want to help increase the understanding of the potential risks out there. By combining historic mapping with geospatial intelligence, we can identify areas where subsidence, sinkholes, or contamination may occur. This is especially important in regions with a legacy of mining, rail infrastructure, or industrial activity. Our goal is to make these invisible risks visible, so that developers, insurers, and homeowners can make informed decisions.”

From physical risk to transition risk: a growing concern for insurers

OS already provides data to financial institutions linked to UPRNs, helping them understand their exposure to climate risks over the next 30 years. This enables targeted investment in resilience and adaptation measures across property portfolios. Insurers also want to be able to understand exposure to catastrophic loss events such as wildfires, so they can price accordingly.

Physical risks affect banks through their lending and investment portfolios. For example, flood damage to a home might affect a borrower’s ability to repay their mortgage or reduce the property’s value. Extreme heatwaves may reduce or disrupt supply chains, impacting business performance and share prices.

Transition risks - such as regulatory changes or shifts in market expectations—can also affect banks. A high-emission manufacturer may face increased costs or reduced demand, affecting its ability to repay loans.

These risks are increasingly being integrated into stress testing, disclosure requirements, and investment strategies. The UK’s Prudential Regulation Authority (PRA) expects firms to assess and manage these risks as part of their broader risk frameworks.

As the UK moves toward net zero by 2050, insurers must contend with transition risks arising from policy changes, regulation, and shifting market expectations. For example, stricter Minimum Energy Efficiency Standards (MEES) could render properties with poor EPC ratings non-compliant, affecting their insurability and market value.

The role of location intelligence in risk assessment

OS data enhances climate risk analysis by enabling insurers to move beyond postcode-level assessments and truly understand the resilience or vulnerability of individual properties. By providing detailed information on topography, elevation, and land use, you can significantly improve the accuracy of flooding and subsidence modelling, with property-specific climate risk assessments.

Lenders are increasingly factoring in climate risk such as flooding, heat stress, coastal erosion and wildfires into property valuation and due diligence. This process is evolving to incorporate property-specific insights, including Unique Property Reference Numbers (UPRNs), building condition, and construction type.

This shift has direct implications for both consumers and insurers: it ensures insurance premiums are accurately calculated, prevents properties from being undervalued, reduces exposure to mispriced risk, and safeguards reputation and financial stability.

Building long-term resilience in the present reality

Trusted valuation providers and insurers are recognising the value of integrating geospatial data into their risk frameworks. As climate risks intensify, the ability to assess exposure at the property level will be a key differentiator.

Central banks and regulators must acknowledge that traditional tools may be inadequate for managing climate-driven financial instability. Geospatial intelligence offers a way to build resilience, protect policyholders, and support a more climate-ready built environment.

The value of location data goes beyond spreadsheets and numbers — it helps answer the “where” questions, enabling businesses to identify and quantify risk. This leads to more efficient capital allocation in long-term investments and ensures the conveyancing sector and consumers are better informed about the risks they face.

Climate risk is no longer a future threat to be gradually incorporated into policy frameworks — it is a present reality. Greater collaboration and decisive action from decision-makers is essential. The time to change is now.