Insurtech ZestyAI has agreed a new partnership with digital risk processing platform Cytora to support commercial property underwriting with its severe weather event data. 

ZestyAI's climate models will be accessible within the Cytora platform to facilitate “straight-through processing of low risks, auto-declining high risks, and scaling underwriting capacity to where it’s needed most”.  

ZestyAI, which raised $US33 million ($49.77 million) last year, says it helps insurers make more informed underwriting decisions and rate fairly and accurately and its climate risk platform is used in the US by leading carriers Amica, Aon, Berkshire Hathaway, Cincinnati Insurance, Farmers Insurance and The California FAIR Plan.  

It combines artificial intelligence with historical losses and cutting-edge data sources to identify risk and assess exposure, including the impact of wildfires, hail, and wind storms.  

"It equips insurers with a powerful resource for understanding and mitigating climate-related risks, ultimately helping them provide superior insurance solutions,” Cytora COO Juan de Castro said. 

Secondary peril losses such as wildfire and hail is a growing concern for commercial property insurers, and ZestyAI Founder and CEO Attila Toth says climate risk is threatening the stability of the insurance industry, costing hundreds of billions of dollars annually.  

“By offering an approach rooted in materials science and atmospheric science to major challenges like wildfires and severe convective storms, we are bringing greater understanding and accuracy to underwriting and enhancing the insurance industry's ability to manage these risks effectively,” he said.