Aon has extended its partnership with AI-based insurtech Zesty.ai following regulatory approval of a California wildfire model developed by the two parties.
The California Department of Insurance (CDI) has approved two rate filings driven by the Z-Fire predictive model – understood to be the first based on an AI model to be signed off by the regulator.
Aon and Zesty.ai initially formed a strategic alliance in 2019. The expanded partnership between the broker and the insurtech is now focused on the accelerated deployment of AI and machine learning applications to help P&C carriers close the property data gap.
The partnership is now also exploring the development of models for additional perils, such as severe convective storms and flood.
George deMenocal, CEO of Aon’s US Reinsurance Solutions, said: “Our collaboration with Zesty.ai is part of Aon’s technological evolution to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way.
“The recent approval of Zesty.ai’s model by the CDI further validates the future potential of AI-driven predictive analytics and the power of these collaborations.”
Last month Aon’s Impact Forecasting unit released a new hurricane model which has been certified by the Florida Commission on Hurricane Loss Projection Methodology for ratemaking in the state.