According to latest Swiss Re data, the re/insurance industry covered roughly 40% of the economic losses related to natural catastrophes in 2023, indicating a large protection gap across the world. Swiss Re estimates that, globally, natural catastrophes caused US$100 billion insured losses this year alone. At least US$12 billion of these total insured losses can be attributed to flood-related events, which is more than 30% higher than the past ten years’ annual average.
Advanced data modelling, combined with scientifically robust tools and intelligence, enable insurance and risk management professionals to better understand the impact of floods on people, buildings, and businesses. Fathom is dedicated to leveraging its expertise in this field to help its customers efficiently identify, analyse and mitigate flood risks. By working closely with Swiss Re Reinsurance Solutions, Fathom gains access to Swiss Re’s client franchise and long-standing expertise in the field of natural catastrophes.
Fathom’s well-established research activities, particularly in the areas of flood modeling and water risk intelligence, align seamlessly with Swiss Re’s expertise in data modeling and risk knowledge.
Despite the acquisition, Fathom will retain its own brand identity, operating collaboratively with Swiss Re’s Reinsurance Solutions division. The primary focus of this collaboration is to bridge the protection gap associated with natural catastrophes, particularly floods, by leveraging innovative flood and climate risk data, maps, and models.
The acquisition positions Swiss Re to enhance its capabilities significantly, gaining access to Fathom’s wealth of expertise and robust suite of products. This development comes at a crucial time, as the global landscape grapples with escalating losses from natural catastrophes, with floods emerging as a major contributor.
Swiss Re’s strategic move reinforces its commitment to staying at the forefront of addressing evolving risks in an increasingly unpredictable climate. Through the collaboration with Fathom, the company aims to provide advanced solutions to the challenges posed by water-related perils, contributing to a more resilient and prepared global insurance landscape.
Russell Higginbotham, CEO of Swiss Re Reinsurance Solutions, said: “We are very pleased to join forces with Fathom in our quest to narrow the protection gap for natural catastrophe risks, such as floods. Fathom’s market-leading research and innovative tools in this area create great synergies with Swiss Re’s risk knowledge and digital capabilities. I’m thrilled to welcome the Fathom team to the Swiss Re organisation and look forward to a successful collaboration.”
Stuart Whitfield, CEO of Fathom, said: “We are committed to helping organisations around the world to analyse, understand and respond to flood risk and the changing climate landscape. Thanks to the strong alignment between our ethos and approach, I’m excited to see us work together with Swiss Re Reinsurance Solutions to bring our sophisticated risk insights to even more customers and help deliver greater global resiliency.”
He added: “This transaction represents a further key step in helping us achieve our vision of becoming the gold standard in the provision of water risk intelligence.”
