ZestyAI, a provider of AI-driven climate and property risk analytics solutions, has received approval for use in rating and underwriting from the Texas Department of Insurance for its complete suite of Severe Convective Storm products.
These include Z-HAIL, Z-WIND, and Z-STORM, which along with Z-FIRE, ZestyAI’s predictive wildfire risk analytics product, have now become among the AI-powered property-based risk models to secure regulatory approval in Texas.
This US state receives the highest number of annual hail claims in the country, with over 1,100 hail events in 2023 alone.
According to ZestyAI, the high incidence of severe storms is why it chose Texas as one of the first states to directly file its Severe Convective Storm product suite as a licensed Advisory Organization.
The Colorado Division of Insurance and Illinois Department of Insurance have approved these products earlier this year. Approval from other states is expected in the coming months.
“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’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 were created to examine the interaction of climatology, geography, and the unique characteristics of every structure and roof.
They then analyse the acquired data in 3D, including accumulated damage from historical storms.
ZestyAI models allow carriers to move from territory-based segmentation to a property-by-property risk assessment and to enjoy the benefits of enhanced underwriting, improved product fit, capturing low-risk market share, and portfolio optimization.
