Climate risk analytics provider ZestyAI has received regulatory approval for its Severe Convective Storm (SCS) Suite in five additional states.
The states are Oklahoma, North Carolina, Louisiana, Wisconsin and Arkansas, covering more than 12 million residential and commercial properties.
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This suite is designed to predict the probability and severity of hail, wind and storm claims at an individual property level.
According to ZestyAI’s analysis, more than 2.1 million properties in these regions are at “high risk” for hail claims, potentially resulting in more than $31bn in roof replacement costs.
ZestyAI’s AI-driven risk models utilise local climatology and property-specific characteristics to provide insurers with a detailed understanding of risk.
The models have been “built, tested and validated” on an “extensive claims database” to aid in underwriting and pricing optimisation for each property.
ZestyAI’s SCS models have been “vetted and approved” across 14 states, encompassing more than 44 million properties in areas such as the Midwest, Great Plains and south.
ZestyAI director of regulatory affairs Bryan Rehor said: “Severe convective storms now cost insurers more than hurricanes, yet traditional underwriting tools don’t provide the precision needed to keep pace with rising losses.
“These approvals reinforce the insurance industry’s shift toward data-driven, property-level risk assessment.”
In December 2024, the Iowa Insurance Division granted regulatory approval for ZestyAI’s SCS suite, which includes Z-HAIL, Z-WIND and Z-STORM.
Last month, the company’s wildfire risk model, Z-FIRE, became filing-ready in California for use in rate segmentation and underwriting without additional review under the Pre-Application Required Information Determination (PRID) process.
