ZestyAI, a provider of AI-driven insurance risk analytics, played a key role in helping carriers and insurers of last resort extend coverage to over 511,000 properties previously considered uninsurable in 2024.
In the coming year, the company aims to double its impact, providing coverage options to more than a million families and businesses, ensuring that those in catastrophe-prone areas have access to sustainable, risk-aligned insurance.
According to a 2024 Deloitte survey, nearly a quarter of homeowners in high-risk states are facing challenges in finding coverage, with over half concerned about affordability.
This underscores the growing need for more detailed insights that help inform underwriting and pricing decisions based on true property-level risk.
Traditional risk assessment methods, which typically rely on broad territorial or ZIP code-based evaluations, often miss the unique characteristics of individual properties, leading to inaccurate pricing, adverse selection, and market pullbacks.
ZestyAI addresses these issues by offering transparent, AI-powered models that incorporate climatology, geospatial data, historical losses, and structural attributes. These models deliver precise assessments of various risks, such as wildfires, hail, and wind, enabling insurers to make more accurate decisions about coverage.
The benefits include clear mitigation recommendations for policyholders, risk-aligned premiums that encourage responsible market growth, and improved underwriting accuracy through AI-driven risk scores and nearly complete US coverage.
ZestyAI’s models also enhance loss cost management by optimising deductible, Actual Cash Value (ACV), and coverage strategies. For carriers, families, and businesses, this leads to faster decisions, improved communication, and greater confidence in coverage options. Additionally, streamlined inspections reduce costs and increase operational efficiency.
ZestyAI works in close collaboration with regulators to ensure transparency, validation, and oversight of its models. Its wildfire model, Z-FIRE, is approved across all Western states, and its severe convective storm models are widely accepted from Texas to Colorado and throughout the Midwest and Great Plains.
“For too long, insurers have had to make high-stakes decisions with incomplete information,” said Attila Toth, Founder and CEO of ZestyAI.
“Advanced AI models are changing that. With granular, property-specific risk insights, insurers can close protection gaps and build a more resilient market.”
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