California FAIR Plan partners with ZestyAI to determine appropriate pricing

The California FAIR Plan Association, often considered the last resort for property insurance in the state, has joined forces with ZestyAI, a provider specializing in climate and property risk analytics solutions. This collaboration aims to harness ZestyAI’s cutting-edge Z-FIRE technology for a more precise evaluation of wildfire risk across California, resulting in fairer premiums for policyholders.

Under this partnership, the California Fair Access to Insurance Requirements (FAIR) Plan will employ ZestyAI’s Z-FIRE technology to assess wildfire risk at each insured location in the state. Recently granted approval by the California Department of Insurance (CDI), the FAIR Plan can now utilize ZestyAI’s Z-FIRE wildfire risk analytics product to determine rates for dwelling policies.

The adoption of Z-FIRE enables the FAIR Plan to distribute rates more equitably across the state, ensuring that properties receive rate adjustments tailored to their specific risk levels. This represents a significant improvement over previous models that did not differentiate between well-mitigated and less-mitigated properties.

Z-FIRE provides property-specific and transparent risk scores, encouraging property owners to undertake mitigation measures, such as creating defensible spaces around their properties or utilizing fire-resistant building materials. This not only reduces wildfire risk for their properties but also has the potential to lower their insurance premiums.

Attila Toth, Founder and CEO of ZestyAI, expressed, “The California FAIR Plan holds a distinctive position as the insurer with the highest concentration of wildfire risk in California. They offer a vital service to homeowners, and we are privileged to assist them in rating policies based on the precise risk associated with each individual property and business owner.”

Victoria Roach, President of the California FAIR Plan, emphasized, “Our mission at the California FAIR Plan is to ensure that all Californians have access to wildfire insurance coverage and the peace of mind they deserve. Z-FIRE will align rates more accurately with risk levels and promote wildfire risk reduction practices that enhance community safety and resilience.”