Fathom, a leading flood risk modelling business is partnering with Reask, a climate risk analytics firm specialised in atmospheric hazard models. The new strategic partnership aims to provide insurers, banks and ESG-focused investors with an unparalleled view of risk data on the combined impact of flood and wind events (hurricanes, tropical cyclones and typhoons).
The collaboration will initially enable each firm to re-sell the other’s products and services to new and existing clients, and from 2023 the two companies aim to bring new hazard data maps and catastrophe risk models to market, covering the combined perils of flood and wind. Recent events have proved the growing impact of climate change on extreme weather, and there is in addition an increased focus at Board level on the environmental element of ESG. As a result of this, insurers and the wider financial services industry have a greater need than ever to understand the combined risk of floods and hurricanes, and how the intensity of both will change and correlate in years to come.
“Fathom and Reask share the same values and approach. We’re working towards the same goals and have many shared customers so this partnership was an easy decision for us both,” said Dr Andrew Smith, COO and co-founder of Fathom.
“Both organisations are led by scientists, who are committed to being transparent and open about the data, methodologies and machine learning techniques that sit at the heart of our models. This shared ‘glass box’ approach means that risk professionals can understand the work our academics put in, and customers know they can trust our models.”
The news follows a Lloyd’s of London report published in February 2022 that identified the need for the industry to model the interrelated catastrophe risk of flooding and tropical cyclones.
Thomas Loridan, CEO at Reask said: “Cyclones bring heavy rains which cause floods. High winds cause tidal surges and large waves which increase coastal flooding – understanding the combined risk of wind and flood events will only get more important as we feel the impact of climate change. Fathom is a world leader in flood risk research and modelling, and we are proud to work with them to provide a new climate risk model that will benefit the insurance world and beyond.”
Both Reask and Fathom are already well established in the industry, and customers have welcomed the news. Marek Shafer, Managing Director at Vave – part of Canopius Group, said: “Vave has strong ties with Reask and Fathom. Both organisations share our commitment to scientific rigour and the championing of novel technology to underwrite complex risk. Best in class data is a critical element of our algorithmic underwriting platform and we’re looking forward to seeing the innovation this partnership will deliver.”
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