ZestyAI, a provider of AI-driven climate and property risk analytics, announced that Z-FIRE, its advanced wildfire risk model, is now filing-ready in California.
Under the Pre-Application Required Information Determination (PRID) process, which focuses on catastrophe load factor models, Z-FIRE can continue to be filed for rate segmentation and underwriting without further review. The model was last included in an approved California rate filing in 2024.
Z-FIRE analyses over 2,000 historical wildfires using AI-driven insights from satellite and aerial imagery, topography, and property-specific data to deliver precise risk assessments.
Built on decades of scientific research, including contributions from the Insurance Institute for Business & Home Safety (IBHS), Z-FIRE covers nearly 100% of US properties and is used by over one-third of California’s insurance market—including the CA FAIR Plan, the state’s insurer of last resort.
Insurers rely on Z-FIRE to refine underwriting, enhance risk segmentation, and ensure premiums accurately reflect each structure’s true wildfire exposure and vulnerability.
“For years, leading insurers have trusted ZestyAI to manage wildfire exposure in California and refine pricing segmentation with precision,” added Attila Toth, Founder and CEO of ZestyAI.
“Now, insurers can continue to confidently integrate it into their rate filings. They can trust that Z-FIRE meets the highest actuarial and scientific standards, ensuring transparency and reliability for regulators, carriers, and policyholders alike.”
ZestyAI routinely assesses Z-FIRE™ through post-event evaluations to gauge how well its risk classifications align with actual wildfire outcomes. Initial analysis of the recent Los Angeles wildfires suggests that Z-FIRE accurately identified the most impacted areas, with 94% of the Palisades Fire zone and 87% of the Eaton Fire zone rated as High or Very High Risk.
The model also highlighted how variations in property characteristics influenced damage, even within the same fire perimeter, reinforcing the value of detailed, structure-level data in wildfire risk assessment.
According to Z-FIRE’s findings, over 1.5 million properties in California face a high or very high likelihood of falling within a wildfire perimeter.
With its granular insights, insurers can shift away from a binary approach to underwriting and instead collaborate with policyholders on mitigation strategies, such as creating defensible space or upgrading fire-resistant building materials.
Since its implementation, Z-FIRE has enabled insurers to confidently issue hundreds of thousands of policies that may have otherwise been denied or non-renewed.
By integrating factors like roof composition, vegetation density, and structural design, the model improves risk differentiation, enhances market stability, and helps insurers navigate wildfire exposure more effectively.
ZestyAI has maintained an ongoing dialogue with the California Department of Insurance (CDI), participating in regulatory discussions related to Z-FIRE.
Following an independent actuarial assessment in 2020, multiple insurers have successfully incorporated Z-FIRE into their rate and underwriting filings, receiving CDI approval. The company also took part in seven CDI workshops throughout 2023-24 and co-hosted a January 2025 webinar addressing California’s evolving regulatory framework.
