From Uninsurable to Protected: The Shift Toward Property-Level Risk Intelligence

How ZestyAI helped unlock coverage for 511,000 properties once deemed uninsurable

Nearly one in four homeowners in high-risk states are struggling to find insurance coverage, and more than half cite affordability as a growing concern, according to Deloitte’s 2024 Insurance Outlook. With carriers facing rising losses and volatile weather patterns, insurance access is narrowing—especially in catastrophe-exposed regions like California, Texas, and Florida.

This challenge demands smarter solutions—not just to assess risk, but to help deliver sustainable, risk-aligned coverage to the people who need it most.

In 2024, ZestyAI helped carriers and insurers of last resort extend coverage to over 511,000 properties previously deemed uninsurable. This year, we aim to double its impact, helping to bring coverage options to over a million families and businesses, ensuring that those in catastrophe-prone regions have access to sustainable, risk-aligned insurance.

“For too long, insurers have had to make high-stakes decisions with incomplete information,” said Attila Toth, Founder and CEO of ZestyAI. “Advanced AI models are changing that. With granular, property-specific insights, insurers can close protection gaps and build a more resilient market.”

Why Traditional Risk Models Fall Short

Most traditional risk assessments rely on ZIP code- or territory-level data, overlooking the property-level characteristics that drive risk—things like roof condition, defensible space, or nearby vegetation. This broad-brush approach leads to adverse selection, inaccurate pricing, and widespread market withdrawal.

A Property-Specific Alternative

ZestyAI replaces this approach with transparent, AI-powered models that integrate:

• Climatology and geospatial data
• Historical loss information
• Structural attributes and building characteristics

This enables precise, peril-specific views of wildfire, hail, wind, and other risks across nearly 100% of the contiguous U.S.

Tangible Results for Insurers and Policyholders

• Clear mitigation guidance to help policyholders take action.
• Risk-aligned premiums that support responsible market expansion.
• Improved underwriting precision through AI-driven risk scores and near-complete U.S. coverage.
• Optimized loss cost controls via more effective deductible, Actual Cash Value (ACV), and coverage strategies.
• A supportive experience for carriers, families, and businesses—enabling faster decisions, better communication, and greater confidence in coverage options.
• Streamlined inspections that lower expenses and improve efficiency.

Built in Partnership with Regulators

ZestyAI works closely with regulators to ensure transparency, validation, and oversight.

• Our wildfire model, Z-FIRE, is approved across all Western states
• Our severe convective storm suite is accepted across Texas, Colorado, the Midwest, and Great Plains

As regulators support the use of advanced models, they are also paving the way for smarter risk-based pricing and proactive mitigation—revitalizing insurance’s core mission: protecting the livelihood of home and business owners and their communities.