Solution Physical risk assessment and resilience upgrades linked to improved insurance terms Key challenge Adaptation investments require upfront spending while benefits are often uncertain and not always reflected in insurance pricing Context Following severe extreme weather including the Haikui Typhoon and Black Rain of 2023, Link assessed its Hong Kong portfolio and identified flooding and typhoons as dominant acute risks Solution in practice Link invested HKD 8 million in targeted flood and typhoon resilience measures, including detachable flood barriers, flood sensors, drainage improvements, relocating electrical switchboards, flood-response protocols, monitoring systems, and emergency drills. AXA modelled the financial benefits, and Link secured improved insurance terms including an 11.7% premium reduction for 2025 Impact / outcome HKD 8m of flood and typhoon measures secured improved insurance terms, including an 11.7% premium reduction for 2025. Next steps Expand resilience-linked insurance approaches across larger real estate portfolios, strengthen the evidence base linking asset-level resilience measures to improved underwriting outcomes, and encourage broader insurer recognition of verified risk reduction measures. Organizations involved Authoring: Glasgow Financial Alliance for Net Zero (GFANZ) Actors: Link REIT; AXA Implementation partners Insurers; Asset Owners & Managers; Property value chain stakeholders