GenStar Partners with ZestyAI to Enhance Hail Risk Underwriting
GenStar, a leading supplier in the excess and surplus specialty property and casualty insurance industry, has established a strategic partnership with ZestyAI, an InsurTech firm renowned for its AI-driven property risk analytics. This collaboration aims to enhance the underwriting process for hail, wind, and severe convective storm risks within GenStar's commercial property segment.
GenStar plans to leverage ZestyAI’s Z-STORM™ model to gain detailed, property-level insights into weather-related risks. This approach is particularly advantageous for managing complex, multi-structure apartment and condominium properties. With these insights, GenStar anticipates refining underwriting accuracy, ensuring risk-aligned pricing, and maintaining coverage availability in regions increasingly affected by severe weather occurrences.
Addressing Complex Risks in Surplus Lines
Operating in the excess and surplus lines sector, GenStar caters to specialty property and casualty insurance needs, often characterized by higher complexity and regulatory compliance requirements. Their portfolio includes properties vulnerable to hail and wind damage, particularly in storm-prone areas. Given the rising volatility driven by climate change, GenStar is committed to enhancing risk management and regulatory compliance through detailed property evaluations.
Driving Risk Assessment with AI
ZestyAI specializes in AI-powered solutions that integrate climatology with detailed property characteristics to predict potential loss frequency and severity. The Z-STORM model refines wind and hail peril assessments, enhancing strategies around underwriting, claims processing, and risk management. This technology benefits large, intricate properties where traditional geographic models may lack granularity.
Transforming Underwriting Strategy
By integrating the Z-STORM model, GenStar expects to enhance underwriting transparency using property-specific risk insights. Precision strategies regarding deductibles, endorsements, and exclusions can facilitate broader policy accessibility in hail-prone markets. The model supports competitive pricing for lower-risk properties and refines strategies for higher-risk properties, aiding in early storm risk detection and proactive loss mitigation.
This partnership reflects a broader industry movement towards adopting AI-driven tools to modernize property underwriting in response to increasingly volatile weather patterns. Matt Brown, GenStar's Senior Vice President, emphasized the benefits of Z-STORM, stating, "Z-STORM offers actionable insights into hail risk at the property level, enabling precise pricing and strengthening customer relationships."
Attila Toth, founder and CEO of ZestyAI, noted, "GenStar is among a growing cohort of carriers adopting AI to upgrade property underwriting. Z-STORM provides detailed property-level insights into hail risk, enhancing GenStar’s underwriting and pricing strategies while identifying emerging risks early to prevent potential losses."