California Approves Insurance Rates Using New AI Model for Wildfire

Historically, wildfire has been challenging to model; traditional models and Fire Hazard Severity Zone maps tend to lack the granularity needed to assess risk accurately. That not only leaves insurers with major losses but also affects their relationship with re-insurers.

California Approves Insurance Rates Using New AI Model for Wildfire

ZestyAI & Aon Drive Innovation

Problem

Historically, wildfire has been challenging to model; traditional models and Fire Hazard Severity Zone maps tend to lack the granularity needed to assess risk accurately. That not only leaves insurers with major losses but also affects their relationship with re-insurers.

Ongoing Joint Success

Multiple rate filings that make use of Z-FIRE™, which was independently reviewed and evaluated by Aon’s catastrophe risk experts, have been approved by the California Department of Insurance.

“Our collaboration with ZestyAI is part of Aon’s technological evolution to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way.” - George deMenocal CEO of Aon’s U.S. Reinsurance Solutions

Z-FIRE™ enhances insurers’ risk selection and rate setting, while understanding the impact of climate change on wildfires and in turn their portfolios.