ZestyAI, a leader in property and climate risk analytics, has announced regulatory approval of its Severe Convective Storm (SCS) Suite in Oklahoma, North Carolina, Louisiana, Wisconsin, and Arkansas.
This expansion means the company’s risk models now cover more than 12m residential and commercial properties across these states, according to FF News.
Severe convective storms caused $58bn in insured losses in 2024, making it the second-costliest year on record.
A recent analysis by ZestyAI found that over 2.1m properties in the newly approved states face a high risk of hail-related claims, putting more than $31bn in potential roof replacement costs at stake.
ZestyAI provides AI-powered property and climate risk analytics, offering insurers, lenders, and real estate firms advanced risk assessment tools. Its technology enables precise, property-level risk evaluations by analysing climate patterns and property characteristics.
The SCS Suite enhances insurers’ ability to predict storm-related claims with accuracy. Unlike traditional models that rely on broad geographic data, ZestyAI’s AI-driven models analyse local climatology and property-specific attributes to assess the likelihood and severity of storm damage.
The models have been built, tested, and validated using extensive claims data, ensuring a detailed and transparent understanding of risk. This approach enables insurers to refine underwriting, optimise pricing, and mitigate preventable losses by identifying key risk factors for each property.
The SCS Suite consists of three core models:
Z-HAIL™: Predicts which roofs are most likely to sustain hail damage and estimates claim size by analysing structural characteristics and accumulated damage.Z-WIND™: Uses AI-driven 3D analysis to assess roof condition, complexity, and vulnerability, providing insurers with predictive insights into wind-related claim likelihood and severity.Z-STORM™: Examines how climatology interacts with each property’s unique features to predict the frequency and severity of storm claims.
ZestyAI’s SCS models have now been approved by regulators in 14 states, covering more than 44m properties across the Midwest, Great Plains, and South. This expansion reinforces the industry’s move toward AI-powered, property-level risk assessment.
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.”
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