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ZestyAI's Z-WATER™ Model Approved in Five States

In a significant boost for the insurance sector, ZestyAI's groundbreaking risk model, Z-WATER™, has been validated and approved for use in the states of Illinois, Indiana, Iowa, Louisiana, and Wisconsin. This model aims to help insurers mitigate one of the most pressing issues in homeowners insurance: non-weather-related water losses. As the demand for more accurate assessments grows, this model becomes essential amid what industry professionals are calling a severe crisis in water damage claims.

Over the past decade, claim severity associated with non-weather water issues has skyrocketed by 80%. Currently, the average loss per claim has surpassed $13,000, making this peril the fourth most expensive for homeowners' insurance claims. Routine problems such as burst pipes and hidden leaks that were once manageable have escalated to catastrophic proportions, surpassing even the impacts of natural disasters like hurricanes. Traditional risk assessment methods, which rely heavily on outdated territory-level or age-based models, have struggled to accurately capture the specifics of these increasing interior water loss claims.

Z-WATER™, however, utilizes cutting-edge technology to change this narrative. By integrating verified loss data with advanced tools such as computer vision and aerial imagery, ZestyAI's platform can analyze property-level vulnerabilities with unparalleled accuracy. The model takes into account permitting histories, localized climatology, and the broader context of infrastructural variables to accurately predict both the frequency and severity of water-related claims. Notably, Z-WATER™ has been shown to enhance predictive accuracy by up to 18 times when compared to traditional insurance models.

“Understanding the nuances of non-weather water threats is crucial for effective risk management,” said Bryan Rehor, Director of Regulatory Strategy at ZestyAI. “Our Z-WATER™ model enables insurers to identify precise vulnerabilities and optimize their pricing strategies while adhering to regulatory standards for transparency and fairness.” This approval marks a major step forward, not only for ZestyAI but for the insurance industry as a whole, as it embarks on a path toward enhanced clarity and customized solutions.

State regulators' acceptance of Z-WATER™ is just one aspect of ZestyAI's ongoing success in gaining regulatory approvals. The company has secured over 80 approvals across various states for five major perils, which include wildfire, hail, wind, storm, and now, non-weather water. Furthermore, Z-PROPERTY™, another of ZestyAI's products that provides analytics for properties and roofs, has also achieved wide state-level acceptance. This innovative suite offers insurers accurate, parcel-level insights that fulfill the stringent requirements of regulatory bodies.

The implications of Z-WATER™ extend beyond mere statistics; they hold the promise of measurable improvements in reducing cross-subsidization among policyholders and strengthening the overall performance of insurance portfolios. By enabling insurers to respond proactively to potential risks before they manifest into costly claims, ZestyAI showcases the transformative power of technology in a time of pressing need.

The introduction of Z-WATER™ and its subsequent acceptance lays the groundwork for a new era in how insurers evaluate and approach risks associated with water damage. Against a backdrop of rising claims and increasing financial pressures, ZestyAI continues to pave the way in Risk and Decision Intelligence, providing tools that enhance the strategic capabilities of insurance professionals.

As the landscape of homeowners insurance evolves, platforms like ZestyAI play an indispensable role, equipping insurers with data-driven insights for effective decision-making. The growing number of proactive measures enabled by advanced models like Z-WATER™ represents not just a corporate win but a significant advancement in the industry's ability to adapt to emerging challenges. Moving forward, the intelligence that these models bring will be vital for navigating the complexities of risk management in a rapidly changing environment.

With such advancements on the horizon, ZestyAI retains its reputation as a trusted partner in the insurance ecosystem, standing firm in its mission to provide insights that make insurance operations smoother and more effective. As we look ahead, the Z-WATER™ model sets a benchmark for future innovations, reinforcing the insurance industry's commitment to stability and resilience in the face of growing risks.