Natural Catastrophes: Flood, Fire & Storm – Special Report 2025

06.01.2025

Fathom joins forces with cat modeling leaders in new Insurance ERM report on natural catastrophes

Explore the evolving landscape of catastrophe modeling and risk management in the face of increasing flood, fire and storm events.

This special report from Insurance ERM, Fathom, Bellwether and Reask explores the latest advancements in catastrophe modeling. Focusing on flood, hurricane, and wildfire risks, ‘Natural Catastrophes: Flood, Fire & Storm’ unpicks how new technologies and open standards in catastrophe modeling are revolutionizing the way that we understand and manage natural catastrophe risks. 

This report provides insights into the most significant shifts in risk and the innovative modeling approaches being developed, featuring perspectives from leading cat modellers and exposure managers.

Key findings from the report

Technology is transforming cat modeling

Making it easier access to high-power computing, satellite imagery, and advancements like AI and machine learning, which are driving significant improvements in model accuracy and accessibility.

Primary loss driving perils are changing

Events like severe convective storms, floods, and wildfires are causing more losses than traditional primary perils such as tropical cyclones and earthquakes.

Open modeling is democratizing risk management

The emergence of open-source frameworks is enabling greater accessibility, innovation, and transparency in cat modeling.

Climate change is reshaping the landscape of risk

Rising temperatures and sea levels are increasing the frequency and severity of many natural disasters, requiring a shift in how models are developed and applied. New catastrophe models are helping risk managers to adapt.

arrow-light-short-left
arrow light short right

Quote There has been a practical realisation that one firm can’t do everything. The strength of all the other vendors is clearly one that can’t be ignored.

Quote Since different model developers make different assumptions and choices, it’s important for insurers to evaluate these decisions to avoid over-reliance on ‘model land’ and ensure their risk assessments are grounded in the real-world.

Quote The key to understanding natcat exposures starts with granular and information-rich data about your exposure locations and assets. What you get out of a natcat model is only as good as the data put in. For localised perils like flood it’s even more important to have detailed location information.

Quote I felt the industry was consolidating around a couple of vendors and that was where we were just going to end up. But it doesn’t feel like that at all now. It feels like the industry wants to take advantage of companies that have specialist areas of expertise.

Background to the report

This special report has been compiled in collaboration with leading experts in catastrophe modeling. It features insights from cat modellers and exposure managers. ‘Natural Catastrophes: Flood, Fire & StormSpecial Report 2025’ also includes interviews with sponsors Fathom, Reask and Bellwether, who are working on the forefront of catastrophe modeling solutions.

A special report by Insurance ERM

Insurance ERM provides news, analysis, and opinion on enterprise risk management (ERM) in the insurance industry. They cover a wide range of topics, including regulatory changes, risk modeling, actuarial issues, climate risk, and technological developments that impact how insurance companies manage risk.

About Fathom

Founded in 2013, Fathom gives risk management professionals the most scientifically robust intelligence for understanding the climate’s effects on water risk. By publishing cutting-edge peer-reviewed academic research and applying it to real-world challenges, Fathom enables stronger decision-making for (re)insurance, civil engineering, corporate risk, financial services, disaster response and government.

As a dedicated team of scientists, Fathom harnesses its passion for innovation and the environment to develop rigorous catastrophe models and comprehensive mapping and geospatial data that make a real-world difference to customers and communities worldwide.

Video Placeholder image
play
play

About Bellwether

Created in 2020 in Alphabet’s innovation division (“The Moonshot Factory”), Bellwether aims to use the best of AI and earth observation data to better understand the changing natural world and its impact on our communities.  Through hazard risk analysis, natural catastrophe models, and high-resolution simulations of mitigation and adaptation, Bellwether aims to educate its customers about physical risk and empower them to make difficult but critical decisions.  Starting with wildfire and the insurance industry, Bellwether is partnering with Swiss Re to bring best-in-class analytics to the risk transfer industry.

About Reask

Reask provides models to support the assessment of natural catastrophe risk around the world. The company’s tools are intended to be used independently or to augment other third-party catastrophe models, and give guidance for seasonal forecasting of tropical cyclones and real-time event response.

Read more
Aerial view floodplain - Pexels Mark A Jenkins
Related Insight
Read more
Related Sector
Read more
Fathom's Global Flood Cat - World map in grid tiles blue

Download the report

Complete the form to receive a copy of the report from Insurance ERM, Fathom, Bellwether and Reask which explores the latest advancements in catastrophe modeling. ‘Natural Catastrophes: Flood, Fire & Storm’ focuses on flood, hurricane, and wildfire risks, unpicking how new technologies and open standards in catastrophe modeling are revolutionizing the way that we understand and manage natural catastrophe risks.