Global Parametrics are partners of Fathom. By utilising data from Fathom-Global, they are combining flood hazard data with streamflow data from the ECMWF GloFAS hydrological and monitoring system to produce the Flood Depth Index (FDI) – the first globally consistent parametric flood index to provide seamless historical, realtime and forecast capabilities. This index will form the basis of a new generation of parametric flood products that can be deployed anywhere in the world.
Parametric solutions offer a pre-defined payout for a pre-agreed event, for example a flood or hurricane. There is no reliance on valuing assets or losses, so clients have a simple, alternative, solution to mitigate risk and build resilience against flooding. This is particularly relevant in areas where insurance may not be available due to lack of data, or pricing may be uncompetitive. With the impact of climate change being felt globally and weather events becoming increasingly unpredictable, parametrics have become an essential tool in reducing the impact of flood risk.
Global Parametrics will implement the FDI initially in the Philippines, and later in Indonesia and Sudan, to support its B-Ready programme. A collaboration with Oxfam and Plan International, B-Ready links parametric indices to humanitarian aid, providing immediate, automatic, payments direct to the most vulnerable when a disaster occurs.
The flood depth index will also be used in over 22 countries spanning Latin America, Asia and Africa as part of GP’s ARDIS programme in partnership with VisionFund International, a global microfinance provider.