Aon is partnering with an InsurTech to help insurers evaluate their portfolio risks by way of a wildfire risk model using artificial intelligence. Swiss Re has launched new parametric insurance cover designed to expedite and simplify the payment of funds to victims of earthquakes in California.
Aon and InsurTech Zesty.ai have formed a strategic alliance designed to help insurers evaluate their portfolio risks through the startup’s wildfire risk model.
Zesty.ai, based in San Francisco, uses artificial intelligence to enhance insurers’ property underwriting.
Using Aon’s distribution network, insurers can evaluate their portfolio risk through Zesty.ai’s Z-FIRE wildfire risk model and also obtain high fidelity property insights for underwriting both catastrophic and attritional (or non-catastrophe) risk. Zesty.ai’s product complements Aon’s U.S. wildfire catastrophe model from Impact Forecasting for reinsurance purchase and exposure management, Aon said.
Zesty.ai’s technology provides access to more than 130 billion data points on buildings and their surroundings which enables granular risk analysis and informed pricing, Aon said in a statement. AI is used to analyze regularly updated satellite and aerial imagery and other data sources – without ever setting foot on the premises, according to the alliance announcement.
Zesty.ai was recently selected by Zurich Insurance from 459 global InsurTech startups as Silver Winner of the Zurich Innovation World Championship.
Swiss Re said it has launched Quake Assist, a new parametric insurance product designed to expedite and simplify the payment of funds to victims of earthquakes in California.
The product launch, through primary insurance partner Falls Lake Insurance Companies will be marketed first to small and medium-sized businesses.
Quake Assist is structured so coverage payments are triggered automatically once certain “parameters” are met. Payments are based on the earthquake’s magnitude (4.0 or greater) and the distance of the insured from the epicenter. Eligible customers receive their cash instantly once this condition is met, reducing the uncertainty of financial losses and helping businesses continue their operation.
Swiss Re developed the proprietary model for Quake Assist, Falls Lake provides the capacity, and coverage is marketed and sold to businesses through Arrowhead general agency.
Sources: Aon, Swiss Re