April 2026

Regulatory Zest

Accelerating approvals, enabling compliance, and shaping the future of insurance regulation

Welcome

Expanding Regulatory Affairs

Key Developments

Filing Strategy

Looking Ahead

Welcome

I'm Bryan Rehor, Senior Director of Regulatory & Government Affairs.

Regulatory demands on AI-driven insurance models are rising, and we've built the team to match.

We've strengthened our Regulatory & Government Affairs capabilities to accelerate approvals, navigate emerging requirements, and engage directly with regulators.

This is the first edition of the Regulatory Zest, a periodic update from our team. Whether you're planning filings or just staying up-to-date, we hope you find this valuable.

Expanding Regulatory & Government Affairs

ZestyAI's Regulatory team has formally expanded into Regulatory & Government Affairs, reflecting a broader and more strategic role.

These are the four key areas:

1. Product Approval & Enablement

‍End-to-end filing strategy support, leveraging ZestyAI's Rate Service Organization (RSO) licenses to streamline approvals and reduce time to market.

2. Regulatory Policy & Standards

Monitoring and interpreting emerging state and NAIC requirements, and translating them into actionable guidance for product development and filings.

3. Government & External Affairs

Building trusted relationships with regulators and policymakers to drive alignment on AI-driven risk models.

4. Technical Leadership & Education‍

Delivering transparent, technically rigorous explanations of ZestyAI models to support regulatory review and build industry understanding.

This expanded scope enables ZestyAI to serve not just as a model provider, but as a strategic partner in navigating an increasingly complex regulatory environment.

Key Regulatory Developments

Recent developments in Colorado and Utah are shaping how carriers must demonstrate the use of advanced models in the context of property-level risk and mitigation.

Colorado (HB 1182) — Compliance Framework

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Colorado's HB 1182 establishes a comprehensive wildfire regulatory framework effective July 1, 2026, requiring carriers to operationalize mitigation, transparency, and consumer engagement across underwriting and rating.

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ZestyAI enables end-to-end compliance through a unified platform:

Mitigation Integration — Z-FIRE incorporates defensible space, structure characteristics, vegetation, wildfire history, and fuel exposure directly into risk scoring.
Consumer Transparency & Disclosures — Scores, ranges, relative position, key drivers, and mitigation impacts are delivered via API and Z-VIEW for clear, plain-language communication.
Appeals & Governance — Z-VIEW provides a structured appeals workflow with audit trails, data correction, and regulator-ready documentation aligned with 10/30-day requirements.
Filing & Model Transparency — Full support for filing documentation, including model methodology, rate impact analysis, and underwriting integration.‍
Ongoing Policyholder Engagement — Quarterly imagery refresh and scenario planning ensure mitigation actions are continuously reflected in risk assessments.

Utah (HB 48 & R590-291) – Compliance Framework

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Utah’s HB 48 and rule R590-291 establish a WUI-centered regulatory framework requiring insurers to anchor wildfire underwriting and rating decisions to the state-defined Wildland-Urban Interface (WUI) boundary and objectively demonstrate alignment.

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The California Department of Insurance (CDI) has introduced significant updates as part of its Sustainable Insurance Strategy. These new bulletins and draft regulations aim to accelerate regulatory approvals, embrace forward-looking models, and address critical reinsurance challenges.

But what do these changes mean for insurance carriers—and how can you prepare?

On January 29, 2025, we hosted a webinar, California’s Evolving Insurance Landscape: The Future of Insurance in the Golden State.

Designed for Legal & Compliance professionals, Product Managers, Underwriters, Actuaries, and Risk & Innovation leaders, the discussion featured expert insights from:

Michael Peterson, Deputy Commissioner of Climate & Sustainability, California Department of Insurance
Karen Collins, VP, Property & Environmental, APCIA
Bryan Rehor, Head of Regulatory Affairs, ZestyAI

Missed the live event but want to gain actionable insights from industry leaders at the forefront of California’s insurance evolution? Watch on demand now!