San Francisco, CA, July 22, 2024 – Today, ZestyAI, the leading provider of climate and property risk analytics solutions powered by Artificial Intelligence (AI), is announcing it has received approval from the Illinois Department of Insurance for its complete suite of Severe Convective Storm products.
Illinois' high population, combined with its Midwestern location and flat terrain, make it one of the most challenging states to manage wind and hail risk for Property & Casualty insurers. This is the second state approval ZestyAI has received for its Severe Convective Storm products, securing approval from the Colorado Division of Insurance earlier this year.
ZestyAI’s suite of storm products are AI-powered climate risk models that predict the frequency and severity of severe storm claims for every property in the US. The products examine the interaction of climatology, geography, and the unique characteristics of every structure and roof, analyzed in 3D, including accumulated damage from historical storms.
With ZestyAI models, carriers are able to move from territory-based rate segmentation to property-by-property to better align pricing to risk. They also benefit from enhanced underwriting, improved loss cost control measures, and portfolio optimization. Carriers can also leverage this approval to adopt ZestyAI’s Roof Quality product, which was comprehensively reviewed and approved by the Department as part of this filing.
ZestyAI’s models are built and validated on real claims data and generate the highest lift in the insurance industry. Additionally, the models are highly transparent, providing the top three factors contributing to each risk score. The models also allow an insurance carrier to modify the risk inputs on demand.
"Having our risk analytics models approved by regulators gives our customers a competitive edge," said Bryan Rehor, Director of Regulatory Affairs at ZestyAI. "Subsequent filings will be streamlined, with faster approval timelines, translating to significant time and resource savings for carriers. Additionally, these approvals lead to increased availability of high-quality insurance for property owners."
ZestyAI has long recognized the importance of regulatory approvals in the ethical and transparent implementation of AI in insurance. It is committed to understanding and complying with regulatory policy while also influencing how the industry navigates the ethical use of AI in insurance.
As leaders in securing approvals for AI-powered risk models, ZestyAI collaborates closely with numerous regulatory bodies, consistently achieving successful outcomes. ZestyAI actively shapes regulations through various strategies, including regular model audits, bias testing, scientific data selection, and continuous engagement with regulators. This proactive approach makes ZestyAI the go-to risk analytics partner for leading insurance carriers across the nation.
More information on the insurance industry’s dynamic regulatory environment, and AI regulatory compliance can be found in ZestyAI’s interactive guide: When Innovation & Regulation Meet.
About ZestyAI
ZestyAI is the leading property and climate risk platform for Property and Casualty insurers in North America. The company has revolutionized the world’s understanding of property and climate perils by combining artificial intelligence with historical losses and cutting-edge data sources. Leading insurers trust ZestyAI’s platform to identify risk and assess exposure, including the impact of catastrophic events like wildfires, hail, and wind storms. ZestyAI helps insurers make more informed underwriting decisions, rate fairly and accurately, enhance reinsurance outcomes, and improve customer experience through actionable risk insights that both property owners and regulators trust.
For more information on how ZestyAI is revolutionizing risk management, visit www.zesty.ai.
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