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California FAIR Plan Partners with ZestyAI for Risk-Appropriate Pricing

California FAIR Plan gains regulatory approval on rate filing based on ZestyAI's Z-FIRE wildfire risk analytics model.

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California FAIR Plan Partners with ZestyAI for Risk-Appropriate Pricing

SAN FRANCISCO, October 30, 2023 – Today, ZestyAI, the leading provider of climate and property risk analytics solutions, and California FAIR Plan Association, the state’s property “insurer of last resort,” announced that the FAIR Plan will begin using ZestyAI's Z-FIRE wildfire risk analytics product to properly assess wildfire risk in California. This cutting-edge technology will enable the FAIR Plan to assess the risk presented at each insured location to determine more accurate premiums for policyholders.

The FAIR Plan recently received approval from the California Department of Insurance (CDI) to use ZestyAI's Z-FIRE wildfire risk analytics product when setting rates for dwelling policies. Using Z-FIRE will allow the FAIR Plan to distribute rates more equitably across the state and ensure that properties receive risk-appropriate rate adjustments.

Previous models used by the FAIR Plan did not distinguish between properties that are highly mitigated and those that are not. Z-FIRE’s property-specific and transparent risk scores will enable property owners to take an active role in lowering their property’s wildfire risk and potentially lowering their insurance premiums by performing mitigation measures, such as creating a defensible space around their properties or using fire-resistant building materials.

“The California FAIR Plan is in a unique position as holder of the highest concentration of wildfire risk of any insurer in California,” said Attila Toth, Founder and CEO of ZestyAI. “They provide a critical service to homeowners, and we are honored to help them rate their policies according to the actual risk of each individual property and business owner.”

Z-FIRE will better align rates with risk and promote wildfire risk mitigation practices that will make communities safer and more resilient.

“At the California FAIR Plan, our job is to ensure that all Californians have access to the wildfire insurance coverage and peace of mind they deserve,” said Victoria Roach, President of California FAIR Plan. “Z-FIRE will better align rates with risk and promote wildfire risk mitigation practices that will make communities safer and more resilient.”

About the California FAIR Plan

The California Fair Access to Insurance Requirements (FAIR) Plan is an insurance pool established by law to assure the availability of basic property insurance to people who own insurable property in the State of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market. The FAIR Plan provides stability in California’s insurance marketplace. It is committed to strengthening consumer choices in the voluntary insurance market, while ensuring that all homeowners, including those who live in areas threatened by wildfires, have access to basic property coverage and the peace of mind they deserve. For more information, visit www.CFPnet.com.

About ZestyAI

ZestyAI delivers precise intelligence on every property in North America to insurers and real estate companies. The company uses AI, including computer vision, to build a digital twin for every building across the country, encompassing 200 billion property insights accounting for all details that could impact a property’s value and associated risks, including the potential impact of natural disasters. Visit zesty.ai for more information.

 

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For more information, contact:

Linsey Flannery, Director of Communications, ZestyAI

linsey@zesty.ai

416-939-9773

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