(Image source: Risk Theory.)
Risk Theory (Dallas) has selected ZestyAI (San Francisco) to support wildfire risk selection for Jupiter Platinum Home, Risk Theory’s new primary excess and surplus homeowners program for high-net-worth properties in California.
Jessica Furrow-Young, EVP of Underwriting, Risk Theory.
The program, built for difficult-to-place homes including properties with significant wildfire exposure, will use ZestyAI’s Z-FIRE for individual property-level wildfire risk assessment, according to a joint statement from the companies.
Jupiter Platinum Home is designed to address a coverage gap for California homeowners whose properties fall outside the appetite of the admitted market or other E&S products, including homeowners facing wildfire-related non-renewals. Coverage is available for homes with dwelling limits starting at $750,000 and up to $25 million in total insured value.
Traditional wildfire scoring approaches often rely on broad geographic or territory-level factors, making it difficult to distinguish risk differences from one property to another, according to the statement. ZestyAI says Z-FIRE applies machine learning to evaluate defensible space, vegetation proximity, topography, building materials and surrounding fire behavior patterns at the individual structure level.
Property-Level Risk Selection
“Jupiter Platinum Home was built for risks that are increasingly difficult to place in California, including homes with elevated wildfire exposure,” comments Jessica Furrow-Young, EVP of Underwriting, Risk Theory. “For us, that means understanding the differences between individual properties rather than treating wildfire exposure as a simple yes-or-no decision.”
Furrow-Young says Z-FIRE gives Risk Theory underwriters insight into both the hazard surrounding a home and the characteristics that influence how an individual structure may perform, helping the company deploy capacity while supporting agency partners and their clients.
Attila Toth, CEO, Zesty.ai.
ZestyAI says Z-FIRE combines hazard and vulnerability into a single risk assessment. The company says the model is approved across all Western wildfire markets and was the first AI-based wildfire model approved as part of a carrier rate filing in California.
“Expanding capacity in California requires more than simply taking on risks the traditional market has pulled back from,” comments Attila Toth, Founder and CEO, ZestyAI. “It requires the ability to differentiate those risks with precision.”
Toth says Risk Theory built property-level risk selection into its underwriting approach from the outset.
Risk Theory is a specialty insurance platform operating a portfolio of MGAs. ZestyAI provides a risk decision platform for P&C insurers, reinsurers, brokers and regulators.