Aon expands Climate Risk Monitor capabilities with Fathom data

In a bid to enhance their flood risk capabilities Aon, a leading global professional services firm, has announced a new collaboration with Fathom. The new work sees Fathom’s flood intelligence added to Aon’s Climate Risk Monitor solution to help assist clients to better understand the influence of a changing climate on perils worldwide.  

Climate Risk Monitor, launched in March 2024, allows clients to visualize and analyze their operational exposures to physical climate risk to drive better risk management decisions. Aon data shows that the property insurance market is increasingly influenced by climate-related perils, with more than $125bn of insured losses caused by weather-related catastrophes in 2024. 

The new collaboration with Fathom utilizes high resolution data to bolster Climate Risk Monitor’s functionality across flash flooding, river flooding, coastal flooding and rising sea levels. As a result, Aon clients can now use the solution to assess US, UK and Japan flood risk at a 10-meter resolution, and 30-meter resolution for other regions globally. 

The addition of Fathom’s high-resolution flood data within Climate Risk Monitor provides forward projections of flood risk across a range of emissions scenarios, helping re/insurers to understand the insurability of the flood peril, as well as supporting due diligence and disclosure and regulatory requirements.

Fathom flood data is also incorporated into Aon’s recently certified Florida Flood v3.0 model from Impact Forecasting, which is available within the team’s ELEMENTS 18 catastrophe modeling suite.

Liz Henderson, Global Head of Climate Risk Advisory for Aon, said:

“The dynamics of the flood peril are particularly sensitive to climate change, which raises growing concerns around global insurability and protection gaps, highlighted by the significant flood events of 2024. Our collaboration with Fathom will help to further enhance the value Climate Risk Monitor brings to clients, not just around physical risk management but also shaping better decisions on human capital in the areas of health, resource allocation and investment.”

Climate Risk Monitor allows clients to assess evolving risk profiles and manage risk in locations with projected increases – thereby assisting risk mitigation and transfer strategies – while helping them to demonstrate climate understanding and planning to stakeholders, and supporting climate disclosures. The tool can also inform risk selection and strategies around pricing and re/insurance renewals, drawing on Aon’s wide-ranging scientific and business expertise to transform a wealth of well-validated climate data into useful information for clients.

Harry Vardigans, Head of Insurance at Fathom, said:

“Building on the success of our previous collaborations with Aon, it’s great to once again join forces to see Fathom’s high-resolution flood risk data integrated into Climate Risk Monitor. Armed with our flood risk intelligence, Aon’s clients can assess and manage their flood risk exposure for anywhere in the world, strengthening the creation of robust risk strategies in an era of increasing climate volatility.”