Generative AI reshapes catastrophe modeling for insurers

Insurers are using diffusion models to generate tens of thousands of synthetic weather events for catastrophe modeling. Fathom, a Swiss Re subsidiary, trained its tool on 1,000 years of climate simulations to project 2030 scenarios. Verisk models extreme wind and rain together. Moody's RMS analyzes satellite imagery for loss estimates. Hallucinations remain a risk.