Swiss Re announces acquisition of Fathom
Swiss Re announces acquisition of Fathom | Insurance Business Australia
Insurance News
Swiss Re announces acquisition of Fathom
Company will retain branding to develop and distribute flood and climate risk data
Insurance News
By
Kenneth Araullo
Swiss Re has announced the acquisition of Fathom, a UK-based company specializing in water risk intelligence and flood modeling to enhance the capabilities of the firm’s Reinsurance Solutions division, particularly in managing flood-related risks, which are a significant contributor to escalating losses from natural catastrophes worldwide.
Swiss Re’s latest data reveals a significant protection gap in the reinsurance industry’s coverage of economic losses due to natural catastrophes. In 2023, the industry covered approximately 40% of these losses. Swiss Re estimates that natural catastrophes have resulted in US$100 billion in insured losses this year, with flood-related events accounting for at least US$12 billion. This figure represents a more than 30% increase over the annual average of the past decade.
Fathom’s expertise in advanced data modeling and robust tools contributes to a deeper understanding of flood impacts on various entities. By joining forces with Swiss Re Reinsurance Solutions, Fathom gains access to Swiss Re’s extensive client network and expertise in natural catastrophe risk management.
As a result of this acquisition, Fathom will maintain its brand identity and continue its established research activities, while benefiting from Swiss Re’s global presence and expertise in the field of reinsurance and natural catastrophe risk management.
“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 organization and look forward to a successful collaboration,” Swiss Re Reinsurance Solutions CEO Russell Higginbotham said.
“We are committed to helping organizations around the world to analyze, 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,” Fathom CEO Stuart Whitfield said.
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