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 /PRNewswire/ - 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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SOURCE ZestyAI