ZestyAI, a company specialising in property and climate risk analytics, has secured regulatory approval for its Severe Convective Storm Suite in Oklahoma, North Carolina, Louisiana, Wisconsin, and Arkansas, the approval impacts over 12 million residential and commercial properties.
Severe convective storms caused $58 billion in insured losses in 2024, making it the second-highest loss total in history.
ZestyAI’s latest analysis highlights that more than 2.1 million properties in these five newly approved states face a high risk of hail claims, with potential roof replacement costs exceeding $31 billion.
In contrast to traditional risk models, ZestyAI’s AI-powered technology predicts the likelihood and severity of claims on an individual property basis.
It does this by evaluating the interaction between local climate conditions and specific property characteristics, allowing for more tailored insights.
The company’s models, developed and tested on an extensive claims database, provide a detailed, transparent understanding of risk. These models identify key risk factors for each property, helping insurers refine their underwriting processes, optimise pricing strategies, and minimise preventable losses.
One component of the suite, Z-HAIL™, identifies properties most likely to sustain hail damage and file claims. It also estimates potential claim amounts by analysing the unique structural features and accumulated damage of each property. This approach provides insights that go beyond the traditional territory or neighbourhood-level assessments.
Z-WIND™ uses AI-driven 3D analysis to assess roof condition, complexity, and vulnerability, offering insurers valuable insights into the probability and severity of wind claims in the future.
Meanwhile, Z-STORM™ predicts the frequency and severity of storm-related claims by evaluating how local climate factors interact with the unique characteristics of each property. This tool delivers a more accurate and precise view of storm-related risk, enabling insurers to better understand and manage their exposure.
“Severe convective storms now cost insurers more than hurricanes, yet traditional underwriting tools don’t provide the precision needed to keep pace with rising losses,” added Bryan Rehor, Director of Regulatory Affairs at ZestyAI. “These approvals reinforce the insurance industry’s shift toward data-driven, property-level risk assessment.”
