The tool considers both inland and coastal flood perils, offering a truly global perspective on a growing financial risk.
According to reports, Global Flood Cat is the first model of its kind to include all major flood perils (pluvial, fluvial, and coastal) across the entire globe at a detailed 30-meter resolution. It also comprehensively accounts for the inherent uncertainty in flood damage, including spatial correlation, nil and total losses, and granular Monte Carlo simulations based on 10 million flood events.
Swiss Re acquired Fathom in December 2023, with the aim of gaining valuable expertise and a robust set of products, complementing its own data and risk capabilities in the field of flood perils – a major driver for constantly rising losses from natural catastrophes globally.
Global Flood Cat enables risk managers to tailor assessments to their specific needs through user-defined vulnerability factors, event loss scaling, hazard scaling, and location-specific flood defense considerations. The model can also differentiate between residential, commercial, and industrial spatial distributions, even with aggregated data.
The solution also covers residential, commercial, and industrial asset types, including buildings, contents, and business interruption, enabling risk managers to assess the full financial impact of flood events on their portfolios.
By leveraging Global Flood Cat, insurance companies can improve their underwriting and pricing strategies for flood insurance. Financial institutions can gain a more comprehensive understanding of flood risk across their global asset portfolios. And governments can use the model to inform their disaster preparedness and response plans.
Global Flood Cat key advantages:
- Truly Global and Multi-Peril: The first model to consider both inland and coastal flood risks across the globe.
- Comprehensive Damage Uncertainty: Enables more accurate risk quantification.
- Country-Specific Vulnerability: Calibrated for regional variations.
- Disaggregation Capabilities: Analyzes data beyond just residential properties.
- Full Customisation: Offers users the ability to incorporate their own risk perspectives.
Russell Higginbotham, CEO Swiss Re Solutions said of the launch in a social media post: “This is a real moment! I’m very excited to see Fathom announcing this new venture and product launch. At Swiss Re Reinsurance Solutions we are right there with our colleagues at Fathom and see this as a very important step, and indeed a stepping stone, to what the future will hold.”
Reporting by Joanna England
