Global reinsurance giant Swiss Re has acquired Bristol, UK-based provider of water risk intelligence and flood models, Fathom, which will retain its own brand and work closely with the firm’s Reinsurance Solutions division to further develop and distribute its innovative flood and climate risk data, maps, and models.
Swiss Re says that Fathom’s well-established research activities complement its capabilities in the field of data modelling and risk knowledge to address the protection gap for natural catastrophes, such as floods.
Through the acquisition, Swiss Re’s Reinsurance Solutions arm gains valuable expertise and a robust set of products, complementing its own data and risk capabilities in the field of flood perils, which is a major driver for constantly rising losses from natural catastrophes around the world.
Swiss Re’s data shows that insurers and reinsurers covered roughly 40% of the economic losses related to natural catastrophes in 2023, highlighting how large the protection gap remains across the world.
The insured nat cat loss total for 2023 has been pegged at more than $100 billion by Swiss Re, and at least $12 billion of this total can be attributed to flood events, which is more than 30% higher than the past ten years’ annual average, according to Swiss Re.
The reinsurer highlights the benefits of using advanced data modelling and scientifically robust tools and intelligence, to enable insurance and risk management professionals to better understand the impact of floods on people, buildings, and businesses.
By working closely with Swiss Re Reinsurance Solutions, Fathom gains access to the global reinsurer’s client franchise and long-standing expertise in the field of natural catastrophes.
“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,” said Russell Higginbotham, CEO of Swiss Re Reinsurance Solutions.
Stuart Whitfield, CEO of Fathom, added: “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.
“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.”
