Today Amica Insurance announced its partnership with Zesty.ai, the leader in climate risk analytics powered by artificial intelligence (AI), to integrate Zesty.ai’s predictive wildfire risk analytics solution, Z-FIRE™, into Amica’s homeowners product line.
This gives Amica immediate access to an AI model that generates precise risk scores for individual properties, rather than the Zip Code-wide perspective that math-based legacy models offer. Amica intends to use Z-FIRE in any state where there’s a need to better understand wildfire risk, and expects the technology will help it avoid claims losses, underwrite and rate policies more effectively, and streamline risk assessment.
B.J. Pitts, Senior Assistant Vice President at Amica notes that Z-FIRE will allow the company to better understand both the likelihood of a home being exposed to a wildfire, as well as how severe the impact would be, which ultimately allows it to offer coverage for more homes:
“With the devastating wildfires in the U.S. in recent years, it’s becoming increasingly difficult to accurately predict and price wildfire risk in those regions. A modern solution like Z-FIRE allows us to leverage the power of AI to generate a clear picture of not only how likely it is that a home might be exposed to a wildfire, but also the probability of its damage. This allows us to confidently offer coverage for homes that may have previously been declined.”
Z-FIRE is an AI model trained on more than 1,400 wildfire events across more than 20 years of historical loss data. It considers property-level features that influence risk, such as topography, historical climate data and critical factors extracted from high-resolution imagery such as building materials and surrounding vegetation in multiple defensible spaces.This gives insurers a true property-level risk score that effectively splits risk, while providing the flexibility to recognize mitigation efforts by homeowners and their respective communities.
Z-FIRE is already in the market with several carriers throughout the country, and it was the first (and to our knowledge only) AI model listed in filings in California for both underwriting and rating that were approved by the California Department of Insurance (CDI).