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San Francisco, CA, August 6, 2024 – Today, ZestyAI, the leading provider of climate and property risk analytics solutions powered by artificial intelligence (AI), unveiled its newest solution to address one of the leading drivers of insurance losses - interior water. Z-WATER is an AI-powered model that predicts the frequency and severity of non-weather water and freeze claims for every property in the country.

“The landscape of non-weather water claims is shifting, with a concerning trend towards increased claim severity,” said Kumar Dhuvur, Co-Founder and Chief Product Officer of ZestyAI. “The rising cost of building materials and labor has inflated claim payouts. Additionally, the interconnected nature of our homes, with open floor plans, finished basements, and high-value electronics, means water damage can have a significantly higher price tag.”

“The landscape of non-weather water claims is shifting, with a concerning trend towards increased claim severity,”

Non-weather water claims rank as the third-leading cause of insurance losses nationwide, underscoring the industry's critical need for a comprehensive predictive model. Until now, the industry has not had a property-specific model, leaving insurers grappling with the challenge of accurately assessing and mitigating the risk of non-weather water damage on a property-by-property basis.

Z-WATER goes beyond traditional models by incorporating the property-specific construction and architectural details that impact the total loss cost of non-weather water and freeze, along with the local infrastructure and water distribution network, for a holistic assessment of risk.

ZestyAI’s AI-powered model uses the interaction of these factors to deliver the best understanding of risk at the property level, helping the insurance industry:

• Set Fair and Adequate Rates: accurately tailor premiums to risk
• Take Action to Reduce Risk: align coverage and work with homeowners at high-risk properties to mitigate risk, such as installing water sensors
• Improve Operations: quickly process low-risk properties, and prioritize on-site inspections for those that warrant a closer look

Z-WATER is trained, tested, and validated on the largest catalog of actual insurance loss data sourced from across the country from multiple carriers. Z-WATER delivers the most accurate results of all interior water models, giving unparalleled insight into the risk of loss and an unprecedented level of granularity.

Z-WATER delivers the most accurate results of all interior water models, giving unparalleled insight into the risk of loss and an unprecedented level of granularity.

ZestyAI’s Z-WATER solution is the latest addition to a complete suite of ZestyAI products designed to evaluate property risk. These products focus on the highest catastrophe and non-catastrophe risks for properties in the United States. ZestyAI also delivers peril-specific models assessing the property-level risk for wildfire, hail, wind, and severe convective storms.

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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For more information, contact:

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In the evolving field of AI property analytics, one persistent challenge stands out: the incomplete coverage of properties, often referred to as the hit rate. Many existing solutions provide valuable insights for a significant portion of a portfolio, but a crucial question remains: what about the properties that aren't covered?

At ZestyAI, we recognized this issue early in our development and committed to addressing it through innovative solutions. Our goal is to offer a near-perfect hit rate, using the most recent and high-resolution imagery available. This ensures insights for all of your properties, not just a select few. Let's explore the technical strategies that drive ZestyAI's success and how they translate into tangible benefits for our clients.

A Multi-Pronged Approach

Traditional AI property analytics solutions often fall short due to limitations in imagery availability. ZestyAI, however, has taken a different approach. Rather than relying on our own imagery capture through planes, satellites, drones, or balloons, we have strategically partnered with nearly all major imagery providers to guarantee the broadest possible coverage.

This approach, while effective, comes with its own set of technical challenges. Imagery providers deliver data at varying resolutions, requiring significant engineering and data science efforts to integrate these inputs.  Our team has meticulously trained our models to account for these discrepancies, ensuring consistent and accurate analysis regardless of the image source. All models are validated for precision and recall against human-labeled imagery.

To demonstrate our effectiveness, we recently conducted portfolio checks for a diverse range of companies. This included a top national carrier, a super-regional carrier operating on both the US East and West Coasts, and a regional provider focused primarily on Florida. The results were impressive: we achieved a perfect 100% hit rate for both the national and super-regional carriers and an outstanding 96% coverage for the regional carrier in Florida. These real-world examples showcase the power of ZestyAI's approach in delivering near-complete portfolio coverage, regardless of geographic location or size.

The Best Property Analysis Starts With the Best Data

Our commitment to data quality goes beyond merely locating properties. At ZestyAI, we understand the importance of using high-fidelity imagery for the most accurate insights. Our multi-provider strategy allows us to cherry-pick the best possible image for each property.

This translates into two key benefits. First, by integrating with most imagery providers, we access a vast pool of imagery, enabling us to select the most recent capture. Outdated imagery can significantly affect the accuracy of property analysis, and ZestyAI ensures you always work with the latest data. Second, we can select the image with the highest fidelity. For example, if the initial image contains heavy shadows due to overhanging vegetation, our system can identify an alternative image from a different provider that offers a clearer, unobstructed view of the property. This meticulous selection process ensures you receive the most accurate and insightful property evaluations possible.

Our effectiveness was further underscored during a recent coverage check for a super-regional carrier. We specifically focused on properties their existing provider could not locate. ZestyAI not only successfully identified 100% of these properties but also delivered higher-resolution images for the rest of the portfolio where the incumbent provider had coverage.

Moreover, the aerial imagery we provided boasted an impressive average capture date within the last 111 days. This recency was consistent even when examining individual states within the carrier's coverage area, with properties in California averaging 101 days, Ohio 88 days, and New Jersey 126 days. These figures highlight ZestyAI's ability to deliver comprehensive coverage and consistently recent, high-quality imagery, ensuring our customers have access to the most up-to-date property insights.

Accuracy: The Backbone of High Coverage

Achieving near-complete portfolio coverage is a significant feat, but it is only half the story. At ZestyAI, we understand that true value lies in the accuracy of the data and insights we provide. Extensive coverage without reliable results is ultimately meaningless. Therefore, we prioritize the accuracy of our Z-PROPERTY models, ensuring they deliver a true picture of each property's condition.

To validate our models' effectiveness, we conducted a rigorous comparison between ZestyAI's property analytics, specifically roof quality assessment, and traditional on-site physical inspections. The results were highly encouraging. Our Z-PROPERTY models matched the findings of physical inspections 95% of the time, achieving a perfect 100% agreement rate when identifying properties with poor roof conditions. This level of accuracy empowers insurance carriers with immense confidence when deploying ZestyAI at scale.

Traditional reliance on physical inspections presents a significant limitation due to resource constraints. Inspecting every property within a vast portfolio is simply not feasible. ZestyAI's AI-powered analytics bridge this gap, allowing carriers to achieve comprehensive coverage while maintaining exceptional accuracy. This frees up valuable inspection resources, enabling carriers to strategically focus their on-site inspections on properties identified by ZestyAI as high-risk or requiring further investigation. By leveraging ZestyAI's insights, insurance carriers can optimize their inspection workflows, ensuring resources are directed where they can have the greatest impact.

Unlocking the Power of Comprehensive and Accurate Property Analytics

Equipping yourself with the right tools is crucial for making informed decisions in the insurance landscape. At ZestyAI, we believe our comprehensive coverage and industry-leading accuracy can significantly enhance your property analytics capabilities.

Get Your Free Coverage Check Today

To see how ZestyAI can address any coverage or accuracy gaps you might be experiencing with your current provider, we invite you to take advantage of our free coverage check. Simply provide a list of the addresses where you lack coverage, and ZestyAI will leverage our extensive imagery catalog to see if we can help.

Contact us to learn more and unlock the full potential of AI-powered property analytics. Let ZestyAI empower you to make smarter decisions, optimize your workflows, and achieve a new level of efficiency.

Today, ZestyAI, the leading provider of climate and property risk analytics solutions powered by Artificial Intelligence (AI), and Amica Mutual Insurance, a leader in auto, home, and life insurance, announced they will be expanding their long-standing partnership.

Amica will now leverage ZestyAI’s full property and climate risk analytics platform. This includes AI-powered climate risk models that evaluate both the hazard and vulnerability of hail and wind damage, Z-HAIL™ and Z-WIND™, as well as ZestyAI’s property risk solution, Z-PROPERTY™. Amica will integrate these new predictive analytics models into a unified AI platform with their existing wildfire risk assessment, Z-FIRE™, and regulatory compliance solutions, CA Compliance Prefill.

Amica will now leverage ZestyAI’s full property and climate risk analytics platform.

As natural catastrophic events, like severe convective storms and wildfires, become increasingly frequent and severe, insurers need to find better ways to accurately predict and proactively address the growing threat of climate risk. ZestyAI provides accurate, property-specific data to help insurers determine the true risk for each property. The models examine the interaction of climatology, geography, and the unique characteristics of every structure and roof, analyzed in 3D, including accumulated damage from historical storms. The models are rooted in decades of science and experimentation by researchers, including the Insurance Institute for Business & Home Safety (IBHS), and are trained on huge amounts of loss data, making them the most accurate solutions on the market.

With ZestyAI models, carriers are able to move from territory-based segmentation to a property-by-property risk assessment. They also benefit from enhanced underwriting and portfolio optimization and can more accurately align policies with coverage needs.

Amica, one of the first insurers to incorporate roof condition into their ratings, is demonstrating industry leadership once again. They are now adopting peril-specific risk models for even more accurate risk assessment, and will continue to rely on roof quality assessment using ZestyAI’s Z-PROPERTY solution in their underwriting processes.

“One of the most meaningful ways we protect our customers and their homes is to work with them to understand and mitigate risk,” said Rebecca L. Stolte, Assistant Vice President at Amica. “We’ve had a very positive experience effectively utilizing ZestyAI’s technology in wildfire-prone states. Adding property insights and climate models for hail and wind will give us a comprehensive view of risk, allowing us to better serve our customers.”

“We’ve had a very positive experience effectively utilizing ZestyAI’s technology in wildfire-prone states. Adding property insights and climate models for hail and wind will give us a comprehensive view of risk, allowing us to better serve our customers.”

“Amica earned the top spot in the J.D. Power 2024 US Property Claims Satisfaction StudySM,” said Attila Toth, Founder and CEO of ZestyAI. “As the leader in customer satisfaction, they recognize the importance of utilizing technology to help customers manage the increasing danger of severe weather.”

ZestyAI’s models are built and validated on real claims data, generating the highest lift in the industry. They are highly transparent, providing the top factors contributing to each risk score. Additionally, ZestyAI models allow carriers to adjust inputs based on customer mitigation actions, leading to dynamic risk score updates. This fosters a collaborative approach where both carriers and policyholders can work together to manage risk effectively.

By leveraging multiple products on the ZestyAI Climate and Property Risk platform, Amica will gain a better understanding of risk for each individual property and be able to make informed and transparent risk decisions to continue to deliver world-class services to its valued customers.

Today, ZestyAI, the leading provider of climate and property risk analytics solutions powered by Artificial Intelligence (AI), is announcing it has received approval for use in rating and underwriting from the Texas Department of Insurance for its complete suite of Severe Convective Storm products. ZestyAI’s Z-HAIL™, Z-WIND™, Z-STORM™and Z-PROPERTY™ Roof Quality products now join ZestyAI’s predictive wildfire risk analytics product, Z-FIRE™, as some of the first AI-powered property-based risk models to be approved in the state.

Texas receives the highest number of annual hail claims of any US state, with over 1,100 hail events in 2023 alone. The high incidence of severe storms is why ZestyAI chose Texas as one of the first states to directly file its Severe Convective Storm product suite as a licensed Advisory Organization. ZestyAI’s suite of storm products have already received approvals from the Colorado Division of Insurance and Illinois Department of Insurance earlier this year, with approvals from other states in the hail belt expected in the coming months. Leading insurers have already licensed the models to enhance underwriting, optimize their portfolios, and more accurately align premiums with Severe Convective Storm risk.   

Texas receives the highest number of annual hail claims of any US state, with over 1,100 hail events in 2023 alone. The high incidence of severe storms is why ZestyAI chose Texas as one of the first states to directly file its Severe Convective Storm product suite.

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. The models are rooted in decades of science and experimentation by researchers, including the Insurance Institute for Business & Home Safety (IBHS), and are trained on huge amounts of loss data, making them the most accurate solutions on the market.

With ZestyAI models, carriers are able to move from territory-based segmentation to a property-by-property risk assessment. They also benefit from enhanced underwriting, improved product fit, capturing low-risk market share, 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 large amounts of real claims data and generate the highest lift in the insurance industry. Additionally, the models are highly transparent, providing the top factors contributing to each risk score. The models also allow an insurance underwriter or agent to modify the risk inputs in real-time and provide specific feedback to home and business owners on impact of risk mitigation actions.

"This approval gives our carrier partners a significant edge," said Bryan Rehor, Director of Regulatory Affairs at ZestyAI. "Since our models have already been successfully reviewed, subsequent filings will be expedited, leading to faster approvals. This reduces the time and resources our partners need for their own approvals and ultimately increases the availability of high-quality insurance for property owners in Texas."

"This reduces the time and resources our partners need for their own approvals and ultimately increases the availability of high-quality insurance for property owners in Texas."

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.

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.

For insurance carriers, ensuring the safety and stability of a property is paramount. A well-maintained home translates to a lower risk of costly repairs and replacements down the road. Understanding a property’s condition allows insurers to confidently estimate the likelihood of future claims and set appropriate premiums.

Physical inspections have traditionally been the gold standard for property risk assessment. However, these inspections come with a hefty price tag, require significant time investment, and are a burden on policyholders. In reality, less than 15% of an insurer's portfolio typically receives this high-touch, in-depth evaluation each year.

In the past, carriers relied on agent-provided photos to supplement these inspections, offering a glimpse into a property's overall condition. While helpful, these snapshots were limited in scope. The rise of aerial imagery provided a broader perspective, enabling insurers to assess aspects like roof condition and debris accumulation at scale.

At ZestyAI, we're on a mission to revolutionize property risk assessment by harnessing the power of data. We continuously develop innovative solutions to extract valuable insights, such as detecting changes from building permits and evaluating secondary structures. And today, we are excited to unveil our latest groundbreaking feature: Driveway Condition.

Introducing Driveway Condition

Driveway Condition is a new feature designed to evaluate the state of a property's driveway, a crucial area for property insurance underwriters.

Driveways in poor condition can pose a significant slip-and-fall liability hazard. Beyond that, a neglected driveway can be a red flag for overall property maintenance, indicating a higher risk of other potential issues. For insurers, Driveway Condition offers a valuable proxy for assessing various risk factors.

Our Driveway Condition model is a robust system that analyzes various factors to categorize a property's driveway as good or poor.  

• Good: This classification denotes a well-maintained driveway with professional construction and minimal aesthetic issues.
• Poor: This classification identifies driveways exhibiting significant wear and tear or structural damage. Poor construction practices may be evident, including unclear delineation from surrounding areas, uneven terrain, and potentially hazardous pathways. Additionally, the presence of large cracks and uneven surfaces create a tripping hazard.

Our analysis indicates that a large majority of properties exhibit well-maintained driveways, falling within the "good" classification. Conversely, properties with significant deterioration ("poor" classification) represent less than 10% of the total. The Driveway Condition model demonstrates exceptional coverage, achieving a hit rate exceeding 95% across the contiguous United States and Hawaii.

Benefits of Driveway Condition for Insurance Carriers

• Enhanced Risk Assessment: Driveway Condition serves as a reliable indicator of overall property care and maintenance. It can potentially impact underwriting decisions across various loss types.
• Streamlined Underwriting: The three-tier rating system empowers insurers to streamline the underwriting process. Properties categorized as "good" can potentially be fast-tracked through approval, while "fair" or "poor" classifications can trigger further evaluation, such as a manual review or an inspection. Driveway Condition can also be used in conjunction with other criteria to create a more comprehensive risk profile.
• Reduce Liability: Identifying properties with potentially hazardous driveways allows insurers to proactively address potential liability risks and work with homeowners to make needed repairs

Driveway Condition: A Powerful Tool for Smarter Risk Management 

In today's data-driven world, insurers require comprehensive tools to assess property risk accurately. ZestyAI's Driveway Condition is a powerful addition to the underwriting toolkit. By leveraging this innovative feature, insurers can gain a deeper understanding of a property's condition, optimize their underwriting processes, and ultimately make informed risk management decisions.

Driveway Condition is included as part of our Location Insights product, delivering highly accurate property intelligence on parcels and structures for all properties in the contiguous US and Hawaii – instantly, and without the need for on-site inspections. Location Insights identifies various high-risk features, such as roof quality, swimming pools, trampolines, lot debris, and overhanging vegetation. This comprehensive data facilitates accurate underwriting, fostering transparency for customers and reinsurers, and is available on-demand in our web app, Z-VIEW, as a batch for projects such as re-underwriting in Z-PORTFOLIO, and via our API.

Partner with ZestyAI for a More Efficient Future

At ZestyAI, we are committed to providing cutting-edge solutions that empower insurers to streamline operations and make smarter decisions. Contact us today to learn more about how Driveway Condition and our other industry-leading features can transform your property risk assessment strategies.