This collaboration aims to help clients better understand the global impact of a changing climate on flood-related perils.
Launched in March 2024, Aon’s Climate Risk Monitor enables organisations to visualise and analyse their exposure to physical climate risks, providing critical insights to inform decision-making. As climate-related disasters increasingly impact the property insurance market—causing over $125 billion in insured losses in 2024 alone—tools like Climate Risk Monitor are essential for navigating these challenges.
Fathom’s high-resolution flood risk data has been integrated into the solution, allowing users to assess flash, river, and coastal flooding, as well as rising sea levels. The tool provides data at an unparalleled resolution of 10 square meters for the US, UK, and Japan, and 30 square meters for other regions, offering precise insights into flood risk across geographies.
“The addition of high-resolution flood data within Climate Risk Monitor provides forward projections of flood risk across a range of emissions scenarios,” a spokesperson from Aon stated. These projections support re/insurers in evaluating the insurability of flood risks, meeting disclosure requirements, and navigating regulatory frameworks.
In addition to flood risk, Climate Risk Monitor provides a comprehensive view of climate hazards, analyzing risks such as drought, extreme rainfall, heat, freeze, tropical cyclones, and wildfires. By offering detailed diagnostic reports and visualisations, the solution empowers clients to assess the impact of these perils on individual assets, portfolios, and specific locations.
Liz Henderson, Aon’s Global Head of Climate Risk Advisory, highlighted the importance of this enhancement “The dynamics of the flood peril are particularly sensitive to climate change, raising growing concerns about global insurability and protection gaps. Our collaboration with Fathom enhances the value of Climate Risk Monitor, supporting physical risk management while shaping decisions around health, resources, and investments.”
Harry Vardigans, Head of Insurance at Fathom, echoed this sentiment “Integrating Fathom’s high-resolution flood risk data into Climate Risk Monitor provides Aon’s clients with robust tools to assess and manage flood exposure globally, creating stronger risk strategies in an era of increasing climate volatility.”
The upgraded Climate Risk Monitor goes beyond flood analysis, offering insights that support risk mitigation strategies, risk transfer solutions, and stakeholder climate awareness. Additionally, Aon’s recently certified Florida Flood v3.0 model from Impact Forecasting, incorporating Fathom’s data, is now available through its ELEMENTS 18 catastrophe modeling suite.
Henderson emphasised how the tool benefits risk managers “Risk managers can leverage Aon’s data to understand climate risks more effectively, informing property insurance placements, optimal limits, and renewal pricing. With Aon’s analytics and broker expertise, clients can unlock capital and mitigate risk more efficiently.”
As climate risks continue to evolve, Aon’s partnership with Fathom represents a step forward in empowering businesses with the insights needed to build resilience and adapt to a volatile future.
