ZestyAI's Z-HAIL, Z-WIND, and Z-STORM are among the first AI-powered property-based risk models to secure regulatory approval in Texas
SAN FRANCISCO, July 25, 2024 - Today, ZestyAI, the leading provider of climate and property risk analytics solutions powered by Artificial Intelligence (AI), is announcing it has received approval for use in rating and underwriting from the Texas Department of Insurance for its complete suite of Severe Convective Storm products. ZestyAI's Z-HAIL™, Z-WIND™, Z-STORM™and Z-PROPERTY™ Roof Quality products now join ZestyAI's predictive wildfire risk analytics product, Z-FIRE™, as some of the first AI-powered property-based risk models to be approved in the state.
Texas receives the highest number of annual hail claims of any US state, with over 1,100 hail events in 2023 alone. The high incidence of severe storms is why ZestyAI chose Texas as one of the first states to directly file its Severe Convective Storm product suite as a licensed Advisory Organization. ZestyAI's suite of storm products have already received approvals from the Colorado Division of Insurance and Illinois Department of Insurance earlier this year, with approvals from other states in the hail belt expected in the coming months. Leading insurers have already licensed the models to enhance underwriting, optimize their portfolios, and more accurately align premiums with Severe Convective Storm risk.
ZestyAI's suite of storm products are AI-powered climate risk models that predict the frequency and severity of severe storm claims for every property in the US. The products examine the interaction of climatology, geography, and the unique characteristics of every structure and roof, analyzed in 3D, including accumulated damage from historical storms. The models are rooted in decades of science and experimentation by researchers, including the Insurance Institute for Business & Home Safety (IBHS), and are trained on huge amounts of loss data, making them the most accurate solutions on the market.
With ZestyAI models, carriers are able to move from territory-based segmentation to a property-by-property risk assessment. They also benefit from enhanced underwriting, improved product fit, capturing low-risk market share, and portfolio optimization. Carriers can also leverage this approval to adopt ZestyAI's Roof Quality product, which was comprehensively reviewed and approved by the Department as part of this filing.
ZestyAI's models are built and validated on large amounts of real claims data and generate the highest lift in the insurance industry. Additionally, the models are highly transparent, providing the top factors contributing to each risk score. The models also allow an insurance underwriter or agent to modify the risk inputs in real-time and provide specific feedback to home and business owners on impact of risk mitigation actions.
"This approval gives our carrier partners a significant edge," said Bryan Rehor, Director of Regulatory Affairs at ZestyAI. "Since our models have already been successfully reviewed, subsequent filings will be expedited, leading to faster approvals. This reduces the time and resources our partners need for their own approvals and ultimately increases the availability of high-quality insurance for property owners in Texas."
ZestyAI has long recognized the importance of regulatory approvals in the ethical and transparent implementation of AI in insurance. It is committed to understanding and complying with regulatory policy, while also influencing how the industry navigates the ethical use of AI in insurance.
As leaders in securing approvals for AI-powered risk models, ZestyAI collaborates closely with numerous regulatory bodies, consistently achieving successful outcomes. ZestyAI actively shapes regulations through various strategies, including regular model audits, bias testing, scientific data selection, and continuous engagement with regulators. This proactive approach makes ZestyAI the go-to risk analytics partner for leading insurance carriers across the nation.
More information on the insurance industry's dynamic regulatory environment, and AI regulatory compliance can be found in ZestyAI's interactive guide: When Innovation & Regulation Meet.
About ZestyAI
ZestyAI is the leading property and climate risk platform for Property and Casualty insurers in North America. The company has revolutionized the world's understanding of property and climate perils by combining artificial intelligence with historical losses and cutting-edge data sources. Leading insurers and real estate companies trust ZestyAI's platform to identify risk and assess exposure, including the impact of catastrophic events like wildfires, hail, and wind storms. ZestyAI helps insurers make more informed underwriting decisions, rate fairly and accurately, enhance reinsurance outcomes, and improve customer experience through actionable risk insights that both property owners and regulators trust.
For more information on how ZestyAI is revolutionizing risk management, visit www.zesty.ai.
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