Adapting to Escalating Severe Convective Storm Risk
Adapting to Escalating Severe Convective Storm Risk
The insurance industry faces escalating risks from the increasing frequency and intensity of severe convective storms, which caused $60 billion in insured losses last year. Traditional risk assessment methods are insufficient to manage these growing challenges.
Adapting to Escalating Severe Convective Storm Risk
Insights from a 5-year retrospective on ZestyAI’s SCS models
The ChallengeThe insurance industry faces escalating risks from the increasing frequency and intensity of severe convective storms, which caused $60 billion in insured losses last year. Traditional risk assessment methods are insufficient to manage these growing challenges.
The SolutionZestyAI’s advanced models, Z-HAIL and Z-WIND, were applied to a carrier’s book of business over a retroactive five-year period. These models provide comprehensive coverage, strong risk segmentation, and actionable insights to optimize underwriting and rating strategies.
The ResultsThe models achieved a 99.7% hit rate, significantly improved risk segmentation (62X and 9.7X lift for Z-HAIL and Z-WIND, respectively), and enhanced the carrier’s combined ratio by 4 points within the first year.
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