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ZestyAI, the leader in AI-powered property and climate risk analytics, today announced a partnership with THORE Insurance, a Texas-based company.

Johnathan Yazdani, President and CEO of THORE Insurance, said:

"After evaluating several options, ZestyAI was the clear choice for our underwriting needs. Far too often, our industry suffers preventable, foreseeable losses and chalks it up to a cost of doing business. No more. Zesty's comprehensive property insights and roof age solution stood out, offering the precision and scalability we need to grow our business in Texas year over year and maintain low prices for our members through underwriting excellence."

"Their data-driven insights and depth of 40+ property features made the decision easy for us, and we’re confident ZestyAI will be a key partner as we build for the future."

ZestyAI’s Roof Age insights, derived from building permits, aerial imagery, and advanced AI analysis, provide 97% data coverage across the U.S., addressing inaccuracies in self-reported roof data.

‍Recent research shows that 15% of roofs are at least eight years older than reported, highlighting the need for reliable, data-driven solutions.

The Digital Roof™platform uses AI-generated 3D analysis to assess roof attributes like condition, complexity, and potential failure points, while Z-PROPERTY™ Location Insights identifies property features such as vegetation overhang, swimming pools, and solar panels. Together, these capabilities deliver deeper insights to refine risk assessment and pricing.

“In addition to their appetite for innovation, THORE’s leadership clearly communicated a vision to serve Texas homeowners with fairly-priced, best-in-class insurance products,” said Sebastian Kasza, Director of Strategy and Business Development at ZestyAI.

Leveraging AI-powered, property-specific insights in underwriting and pricing is the best way that a carrier can achieve that ambition sustainably.

We are thrilled to partner with Jonathan and his team as they serve the Texas insurance market.”

By Attila Toth, Founder and CEO, ZestyAI 

“SaaS is dead.” 

With these three words, Microsoft CEO Satya Nadella sparked a global debate, challenging the foundation of enterprise operations. His prediction? AI agents will soon replace traditional SaaS workflows, moving business logic to a dynamic AI layer and leaving legacy tools behind. 

For property and casualty (P&C) insurers, this prediction is more than a tech trend—it’s a wake-up call. Carriers have invested heavily in SaaS platforms to modernize underwriting, claims, and risk management. But with AI agents poised to dominate, are these investments like castles built in the sand, vulnerable to the rising tide of AI? 

Let’s unpack what Nadella’s claim means for P&C insurers and explore how to prepare for a future where agentic workflows reshape this $2.6 trillion global industry. 

From Static Systems to Agentic Workflows

Over the past decade, P&C carriers have focused on modernizing their technology stacks, moving
to SaaS-based systems for policy management including underwriting, claims, and billing. These platforms promise efficiency gains, streamlined workflows, and improved business intelligence. Yet Nadella’s vision points to a future where AI agents bypass these systems altogether, directly interact- ing with data to execute tasks dynamically. 

Enter agentic workflows. 

Agentic workflows are powered by AI agents—autonomous systems that can analyze data, make decisions, and execute tasks in real-time without rigid reliance on predefined rules or interfaces. Unlike traditional workflows that depend on user interaction, agentic workflows dynamically adapt to the situation, accessing real-time data and leveraging advanced decision models to solve problems creatively. 

Let’s Break it Down With Examples:

• Underwriting: Traditionally, underwriters rely on policy management systems to assess risk, manually inputting and analyzing data. In an agentic workflow, an AI agent pulls data from internal and external sources, such as property imagery or weather patterns, and evaluates risk in real time, and proposes pricing autonomously.
• Claims: Instead of adjusters triaging claims by reviewing data and making decisions step by step, AI agents analyze First Notice of Loss (FNOL) data, cross-reference it with historical patterns, flag potential fraud, and recommend payouts or next steps—all in seconds. 

Think of agentic workflows as moving from a ‘static map’ to a ‘smart GPS.’ Traditional SaaS systems provide fixed routes, like a printed map or a AAA TripTik, where users must plan and follow a predefined path. In contrast, AI agents function like a GPS that dynamically adjusts to roadblocks or detours, guiding you in real-time to reach your destination more efficiently. 

This doesn’t eliminate the roles of underwriters or adjusters—it amplifies them. With agentic workflows, professionals transition from being data processors to strategic decision-makers, supported by AI agents that execute repetitive and analytical tasks. 

The question is not if, but how fast this shift will occur. In P&C, where SaaS investments are relatively new, the transition may take time. But the direction is unmistakable, and forward-thinking executives should prepare now.

How Insurance Leaders Can Prepare for the AI Era 

The shift to AI-driven workflows brings both challenges and opportunities. To stay ahead, insurance leaders must act now. Here’s how: 

1. Build AI-First Architectures 

Insurers must prioritize modular, API-driven platforms that enable seamless integration with AI agents. An AI-first architecture treats applications as interchangeable layers rather than static end- points, ensuring adaptability to future innovations without extensive system overhauls. 

2. Unify Siloed Data 

AI agents thrive on data, yet fragmented, siloed data remains a significant challenge for insurers. It’s not about choosing the “right” database—AI agents can interact with any data store. What matters is creating a unified and federated data structure that breaks down silos and provides AI agents with a cohesive view of organizational information. 

CIOs should prioritize data integration, ensuring underwriting, claims, customer, and risk data are accessible across the enterprise. A federated approach bypasses the need for lengthy consolidation projects while enabling AI-driven insights. 

3. Engage Regulators Early

AI workflows will only succeed if regulators are on board. Departments of Insurance (DOIs) need to trust the decision-making processes of AI agents and ensure they meet standards for transparency, fairness, and compliance. 

At ZestyAI, we’ve worked with state Departments of Insurance across the U.S. to gain approval for our AI models. Building trust with regulators requires proactive engagement, clear communication, and ongoing education. Insurers that lead in this area will not only gain competitive advantages but also shape the regulatory frameworks that govern the use of AI. 

4. Pilot Agentic Workflows 

Start small, but start now. Deploy AI agents in low-risk areas like claims triage or fraud detection. Early pilots provide valuable lessons and build organizational confidence in agentic workflows. 

5. Expand ROI Thinking 

AI agents are poised to fundamentally transform operations, requiring a broader perspective on ROI. Beyond traditional metrics like cost reduction or workflow efficiency, consider strategic gains such as: 

- Faster speed to market.
- Improved customer satisfaction. - Enhanced risk segmentation. 

6. Put Technology Partners to the Test

Carriers should evaluate their SaaS providers on their readiness to transition to agentic workflows. Ask pointed questions: What is their AI strategy? How do they plan to integrate AI agents into their products? - Are they prepared to support modular, dynamic workflows? 

The Bottom Line 

The future Nadella outlines—a world driven by AI agents—is as disruptive as it is exciting. For P&C insurance executives, it’s a call to action: the technology stack of today may not meet the demands of tomorrow. Preparing now by investing in AI-first architectures, building unified data structures, and engaging with regulators will position insurers to thrive in this new era. 

SaaS isn’t dead yet, but the writing is on the wall. The question is, are you ready to embrace the future? Are you building a castle ready to weather the waves?

Missouri’s severe convective storms are growing more destructive, with hailstorm-related claims skyrocketing by 245% in 2024 alone. To address this rising risk, ZestyAI has secured regulatory approval from the Missouri Department of Insurance for its Severe Convective Storm suite, including Z-HAIL™, Z-WIND™, and Z-STORM™.

Missouri’s Rising Storm Losses

Missouri’s vulnerability to severe convective storms is well-documented. Since 1980, 82 weather events have each caused over $1 billion in damages. In 2024, a March hailstorm—dubbed the “Gorilla Hail” storm—resulted in nearly 7,000 claims, a dramatic increase from just over 2,000 hail claims the previous year.

How ZestyAI’s Models Make a Difference

ZestyAI’s Severe Convective Storm suite provides property-specific risk assessments, enabling insurers to predict and manage extreme weather impacts with precision.

Key Features:

• Z-HAIL™: Identifies a roof’s susceptibility to hail damage and estimates potential claim severity using property-specific attributes like roof complexity and historical losses.
• Z-WIND™: Predicts wind claim frequency and severity by combining climatology with property-specific data such as roof structure and damage history.
• Z-STORM™: Delivers granular risk scores for storm claim frequency and severity, factoring in climatology, building characteristics, and roof design.

These AI-driven models help insurers proactively manage storm-related risks, allocate resources effectively, and encourage policyholders to take preventive measures.

Empowering Insurers with Advanced Risk Insights

Bryan Rehor, Director of Regulatory Affairs at ZestyAI, said:

Missouri’s exposure to tornadoes, hail, and damaging winds makes advanced risk assessment tools essential. By streamlining the regulatory process, we enable insurers to focus on protecting policyholders while reducing losses.

With regulatory compliance and validated loss data at its core, ZestyAI’s suite enables insurers to:

• Enhance underwriting precision and optimize deductible strategies.
• Provide policyholders with actionable insights to reduce risks and prevent losses.
• Move beyond reactive damage assessments to proactive storm risk management.

Looking Ahead

ZestyAI’s Severe Convective Storm suite has already received regulatory approvals in Texas, Colorado, Illinois, Indiana, and Iowa, with additional filings in progress. By equipping insurers with AI-powered tools, ZestyAI is modernizing the way storm risks are assessed, ensuring communities and insurers are better prepared to weather the storm.

Who We Are: Revolutionizing Risk Management with AI

ZestyAI is the leading property and climate risk platform, leveraging advanced AI and data science to provide property-level risk insights to insurers across the United States. Our mission is to redefine how insurers assess and manage risk while fostering a healthier, more sustainable, and more affordable insurance market.

At its core, ZestyAI empowers carriers to assess risk with unmatched precision, aligning premiums with actual property-level data. Our data-driven recommendations help insurers improve underwriting, streamline operations, and optimize portfolios—all while ensuring transparency and regulatory compliance.

ZestyAI’s solutions are rigorously validated by state departments of insurance, including in California, Texas, and Colorado. Our wildfire risk model became the first to gain approval as part of a carrier rate filing from the California Department of Insurance (CDI), setting a benchmark for the responsible adoption of AI in the industry.

With over 200 billion data points analyzed and nearly 100% aerial imagery coverage across the contiguous U.S., ZestyAI transforms vast amounts of data into actionable intelligence. From roof conditions to vegetation density, our platform enables insurers to reduce loss ratios, improve profitability, and increase the availability of insurance to underserved markets.

Proven Performance in the Toughest Conditions

ZestyAI's AI models have been tested and trusted under the industry’s most challenging scenarios:

• Z-FIRE™: The gold standard for wildfire risk, adopted across all wildfire-prone markets in the U.S.
• Z-HAIL™: Predicts hail claim frequency and severity with up to 58X greater accuracy than traditional models, as validated by IBHS research.
• Z-WIND™ and Z-STORM™: Deliver granular risk assessments for wind and storm frequency and severity, with regulatory approval across several states.
• Z-WATER™: Our newest model predicts non-weather-related water damage claims using insights from property construction, local water systems, and environmental factors.

Powered by 30+ proprietary computer vision algorithms, our peril-specific models provide carriers with the flexibility to use ZestyAI’s risk scores or integrate detailed property insights directly into their own workflows.

The Origin of ZestyAI: A Bold Pivot

ZestyAI’s journey began not in insurance, but in clean energy. Founded as Powerscout, we made a pivotal shift in 2017 when the devastating California wildfires revealed a critical gap in how insurers assess risk. Recognizing the potential of our imagery and AI models to become a lifeline for carriers and communities alike, we refocused our mission. By 2018, ZestyAI was born, dedicated to revolutionizing insurance through AI-driven insights.

Why ZestyAI?

Today, our platform empowers carriers to achieve transformative outcomes:

• Set Precise Rates: Move beyond broad territory-based pricing to property-level assessments, attracting low-risk customers with precision pricing while helping high-risk properties mitigate exposure.
• Enhance Risk Selection: Leverage comprehensive risk profiles for smarter underwriting, optimizing combined ratios and profitability.
• Improve Product Fit: Tailor coverage options with appropriate deductibles and endorsements, reducing losses and improving customer satisfaction.
• Optimize Inspections: Direct resources to properties that need attention, reducing unnecessary on-site inspections and cutting costs.
• Streamline Operations: Automate approvals for low-risk properties, freeing underwriting teams to focus on complex cases.
• Optimize Portfolios: Reassess books of business to identify accumulated risks and adjust premiums or coverage based on real-time data.

At the heart of these capabilities is our commitment to delivering a 10X return on investment (ROI) for our customers. By combining precise risk assessment with actionable insights, ZestyAI helps carriers achieve measurable results.

Building a Healthier Insurance Ecosystem

ZestyAI’s impact extends beyond carriers—we’re reshaping the insurance ecosystem to be more accessible, equitable, and efficient.

• Fair Pricing: Align premiums with actual risk to attract low-risk customers while offering guidance for mitigating high-risk exposures.
• Proactive Risk Mitigation: Empower policyholders with tailored guidance, like improving roof conditions or clearing vegetation, to reduce exposure.
• Operational Efficiency: Streamline processes to lower costs and focus resources on the most impactful areas.

Leading the AI Revolution in Insurance

As climate risks grow more intense, insurers must adopt innovative tools to assess and mitigate these challenges. ZestyAI is at the forefront of this transformation, enabling carriers to not only adapt but thrive in an evolving market.

The future of insurance lies in AI-driven precision, and with ZestyAI, that future is already here.

Schedule a demo today to see how ZestyAI can transform your risk strategy in 2025.

As we close out 2024, we’re taking a moment to reflect on a year defined by deeper partnerships, relentless innovation, and measurable progress in the insurance industry.

Watch the video message from our CEO, Attila Toth, to learn more about the milestones we achieved and what’s next for ZestyAI.

Strengthening Relationships

This year, we deepened our collaborations with existing partners and welcomed new customers across the country. Nearly half of the top 100 insurance carriers now trust ZestyAI to deliver precise, AI-driven insights that enhance underwriting, streamline operations, and address emerging risks in high-peril areas.

Innovation That Delivers Value

At ZestyAI, innovation is never just for its own sake—it’s about delivering actionable value that solves real-world challenges. In 2024, we launched:

• Z-WATER™: Our new model that predicts non-weather-related water damage claims, helping carriers identify and mitigate this growing risk.
• Roof Age: Leveraging historical imagery and building permit data to provide accurate roof condition insights for better underwriting and risk management.

We also delivered substantial enhancements to Z-PROPERTY™, our leading property insights platform:

• Increased Coverage and Improved Hit Rates: Ensuring more comprehensive and reliable property assessments.
• New Features: Including driveway condition insights and support for multi-structure properties, enabling insurers to prioritize resources and streamline inspections.

Tremendous Regulatory Momentum

This year brought significant progress in regulatory approvals, further validating ZestyAI’s solutions in key markets like California, Texas, and Colorado. Our models continue to set a benchmark for responsible AI adoption, ensuring insurers can confidently integrate advanced property risk insights into their workflows.

Delivering Performance Across Perils

ZestyAI’s AI-powered models continued to prove their value under the industry’s most challenging conditions:

• Z-FIRE™: Recognized as the gold standard for wildfire risk across the U.S.
• Z-HAIL™: Predicting hail claim frequency and severity with up to 58 times greater accuracy than traditional models.
• Z-WIND™ and Z-STORM™: Delivering granular risk assessments for wind and storm-related risks.

These innovations are helping insurers reduce loss ratios, improve profitability, and ensure coverage availability where it’s needed most.

Looking Ahead to 2025

As we move into the new year, ZestyAI remains committed to revolutionizing risk management through AI-driven precision and proven performance. We will continue to help insurers navigate emerging challenges, drive efficiency, and build a more resilient future for their policyholders.

From all of us at ZestyAI, thank you for being part of this journey. Wishing you a wonderful holiday season and a successful year ahead.

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!