The California FAIR Plan Association, the state’s property “insurer of last resort,” has partnered with ZestyAI, a provider of climate and property risk analytics solutions, to access its wildfire risk analytics product to properly assess wildfire risk in the state.
Through this partnership, FAIR Plan – the California Fair Access to Insurance Requirements (FAIR) Plan – will use ZestyAI’s Z-FIRE cutting-edge technology to assess the risk presented at each insured location in California to determine more accurate premiums for policyholders.
According to the announcement, the FAIR Plan recently received approval from the California Department of Insurance (CDI) to use ZestyAI’s Z-FIRE wildfire risk analytics product when setting rates for dwelling policies.
Using Z-FIRE will allow the FAIR Plan to distribute rates more equitably across the state and ensure that properties receive risk-appropriate rate adjustments, the Association highlighted; noting that previous models did not distinguish between properties that are highly mitigated and those that are not.
With Z-FIRE’s property-specific and transparent risk scores property owners could be encouraged to perform mitigation measures, such as creating a defensible space around their properties or using fire-resistant building materials.
This would help to lower their property’s wildfire risk and potentially lowering their insurance premiums.
Attila Toth, Founder and CEO of ZestyAI, said: “The California FAIR Plan is in a unique position as holder of the highest concentration of wildfire risk of any insurer in California.
“They provide a critical service to homeowners, and we are honored to help them rate their policies according to the actual risk of each individual property and business owner.”
“At the California FAIR Plan, our job is to ensure that all Californians have access to the wildfire insurance coverage and peace of mind they deserve,”
Victoria Roach, President of California FAIR Plan, added: “Z-FIRE will better align rates with risk and promote wildfire risk mitigation practices that will make communities safer and more resilient.”
