Swiss Re, a leading reinsurance provider, has announced its acquisition of Fathom, to compliment its own data and risk capabilities in the field of flood perils.
Fathom’s extensive research aligns seamlessly with Swiss Re’s prowess in data modelling and risk understanding, particularly in addressing the growing protection gap concerning natural calamities, such as floods.
The UK-based company is renowned for its expertise in water-related risks, especially within evolving climate scenarios, as a result of this, the strategic acquisition also bolsters Swiss Re’s Reinsurance Solutions division by incorporating Fathom’s niche capabilities in flood models and water risk intelligence.
Swiss Re’s data indicates that in 2023 alone, natural catastrophes caused $100bn in insured losses, further underlining the need to address the protection gap. Leveraging advanced data modelling and robust intelligence, Fathom aims to assist organisations in efficiently assessing and mitigating flood risks.
The collaboration aims to bridge the protection gap evident in the re/insurance industry, covering only 40% of economic losses from natural catastrophes globally. With flood-related events accounting for over $12bn in insured losses this year—marking a 30% increase compared to the annual average of the past decade—this partnership aims to fortify resilience against such calamities.
Russell Higginbotham, CEO of Swiss Re Reinsurance Solutions, said, “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.”
Stuart Whitfield, CEO of Fathom, commented, “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.”
Despite the acquisition, Fathom will continue its research independently while benefiting from Swiss Re’s extensive client network and expertise in natural disaster management. This synergy is poised to set new standards in water risk intelligence provision.
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