Flooding, which caused $14 billion in insured losses in 2023, remains one of the most significant natural hazards for insurers and risk managers. In response, flood risk intelligence firm Fathom has unveiled Global Flood Cat, a sophisticated catastrophe model aimed at helping industries better assess and manage financial exposure to flood-related events.
The newly introduced model evaluates flood risks across rainfall, river, and coastal areas, offering a comprehensive tool for understanding flood exposure. This comes at a critical time, as climate change intensifies the frequency and severity of flooding events.
Bridging Data Gaps in Risk Assessment
One of Global Flood Cat’s key benefits is its ability to fill existing gaps in flood risk data. The model assists insurers and risk managers by improving accumulation management, premium setting, and planning. By providing robust, data-driven insights, it enhances the ability to evaluate potential financial impacts.
The model also offers flexibility. Users can adjust for specific factors like vulnerability, hazard intensity, and local flood defense capabilities. These customizations allow for more accurate assessments tailored to unique locations and properties.
Advanced Technology and Global Reach
Global Flood Cat is powered by Fathom’s validated global datasets, including the peer-reviewed FABDEM+ and Global Flood Map. These datasets have been endorsed by academic institutions and represent some of the most reliable flood risk data available.
In addition, the model incorporates Monte Carlo simulations, a technique that helps represent the uncertainty of potential damages. This level of precision allows insurers to fine-tune their exposure models across various property types, whether residential, commercial, or industrial.
Availability on Leading Platforms
Fathom’s Global Flood Cat is accessible through several major risk modeling platforms, including Nasdaq’s Risk Modelling for Catastrophes and Moody’s Open Modeling Engine. It is also fully integrated with the Oasis Loss Modelling Framework, ensuring compatibility with a wide range of tools used by insurers globally.
This new model aims to provide critical support in managing the growing financial risks associated with flooding, allowing businesses to make more informed decisions in an era of increasingly volatile weather patterns.
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