ZestyAI Secures $15M Credit Facility to Expand AI Risk Analytics in P&C Insurance

ZestyAI, a leading provider of AI-driven risk analytics for the U.S. property and casualty insurance sector, has secured a $15 million credit facility from CIBC Innovation Banking. This capital infusion bolsters ZestyAI's financial strength and supports its expansion as it scales the adoption of advanced climate and property risk models. The company more than doubled its property risk assessments from 2023 to 2024, reaching over 31 million, and is on track to exceed 50 million assessments in 2025.

ZestyAI's platform offers detailed, parcel-level risk insights that integrate property data, climate science, and artificial intelligence. These insights assist insurers in refining underwriting accuracy, pricing policies precisely, optimizing inspections, and extending coverage in catastrophe-prone regions. Their AI-driven models address risks from wildfires, severe convective storms, and non-weather-related water damage.

The company has expanded its footprint across multiple segments of the U.S. insurance market, including admitted carriers, managing general agents (MGAs), surplus lines, FAIR Plans, and public-private partnerships. ZestyAI has added 33 new or expanded partnerships in the past year and introduced four new products, reflecting strong market demand for enhanced risk analytics.

Regulatory acceptance of ZestyAI's models has accelerated significantly, with over 50 filings approved nationwide. Notably, the California Department of Insurance has reviewed and approved the Z-FIRE wildfire model for rate segmentation and underwriting without further review under the Pre-Application Required Information Determination (PRID) process, effective January 2, 2025.

ZestyAI's data-driven approach supports insurers in aligning premiums with actual risk, promoting better risk management and potentially increasing coverage availability in high-risk areas. In 2024, the platform enabled coverage expansions to over half a million properties previously considered uninsurable. This growth emphasizes the role of AI in enhancing underwriting precision and regulatory compliance within the property and casualty insurance industry.