Case Study: FEMA improves flood insurance pricing accuracy with Fathom flood risk data

Fathom provided FEMA with a more accurate, up-to-date picture of US flood risk which informed how the NFIP prices insurance

The Federal Emergency Management Agency (FEMA) needed to overhaul its National Flood Insurance Program pricing to be more equitable and fiscally sustainable. Its challenge was a significant data gap, as existing sources provided overtopping frequency data for less than 20% of US levee systems, limiting its ability to accurately assess individual property flood risk for its new Risk Rating 2.0 initiative.

Fathom provided its Fathom-US 2.0 flood hazard dataset to fill this critical gap. FEMA used this data to calculate overtopping frequency estimates for an additional 17% of levee systems and to inform assumptions for others. This enabled FEMA to equitably price insurance premiums based on a graduated understanding of flood risk for individual properties. The new risk rating system has been in use since October 2021, making it easier for policyholders to understand and trust, and helping to close the insurance gap.

FEMA