Case Study: Bank of England benchmarks climate flood risk analysis with Fathom

Supporting the Bank of England in their analysis of submissions from large general insurers, banks and selected Lloyd’s syndicates

The Bank of England required a way to analyze and benchmark climate-related flood risk submissions from major financial institutions. To meet this challenge, they engaged Fathom to utilize its high-resolution flood modeling capabilities for a comprehensive analysis of UK flood hazards.

Fathom provided the Bank of England with data from its UK CAT model, running a sample portfolio against five discrete climate scenarios to compute average annual losses and 100-year losses. This data enabled the Bank to create a comparative benchmark, which they used as their reference "truth" to identify inconsistencies in the submissions from participating firms. The solution from Fathom ensured the Bank's analysis was supported by scientifically robust data, enhancing their understanding of future climate risk hotspots.

Bank of England

Giorgis Hadzilacos

Senior Technical Specialist – Catastrophe & Climate Risk