Flood risk modelling business Fathom has collaborated with climate risk analytics firm Reask to jointly create flood and wind risk models.
Initially, the two entities will focus on reselling each other’s products and services to both new and existing clients.
The companies plan to work on new hazard data maps and catastrophe risk models from 2023.
These maps and risk models will cover impacts of flood and wind events, including hurricanes, tropical cyclones and typhoons.
As environmental element of environmental, social and governance (ESG) concerns gain attention, the strategic partnership seeks to help insurers, banks and ESG-focused investors with detailed risk data.
Fathom COO and co-founder Dr Andrew Smith said: “We’re working towards the same goals and have many shared customers so this partnership was an easy decision for us both.
“Both organisations are led by scientists, who are committed to being transparent and open about the data, methodologies and machine learning techniques that sit at the heart of our models.
“This shared ‘glass box’ approach means that risk professionals can understand the work our academics put in, and customers know they can trust our models.”
Reask CEO Thomas Loridan said: “Cyclones bring heavy rains which cause floods. High winds cause tidal surges and large waves which increase coastal flooding – understanding the combined risk of wind and flood events will only get more important as we feel the impact of climate change.”
Welcoming the move, Canopius Group’s unit Vave managing director Marek Shafer said: “Both organisations share our commitment to scientific rigour and the championing of novel technology to underwrite complex risk.
“Best in class data is a critical element of our algorithmic underwriting platform and we’re looking forward to seeing the innovation this partnership will deliver.”