Since 1792, the Old Farmer’s Almanac has been publishing weather predictions for 16 regions in the United States and 5 in Canada, giving insight to subscribers on temperatures and rainfall for the coming year. Their predictions have been shown to be about 50% accurate, which is at least better than Punxsutawney Phil’s 39% success rate at predicting the length of winter. The Almanac uses 30-year statistical data, solar activity, and historical weather conditions to create their forecasts, and Phil is, well, a groundhog. Considering that the most accurate weather predictions only go out a few days, maybe they’re just looking too far into the future?
When it comes to managing insurance risks, though, it’s all about looking ahead to the future, hopefully with more than 50% accuracy. Rates, available coverages, and eligibility are determined by many factors, including past and future weather, fire, flood, and storm patterns. Insurance companies are always looking for the best way to process data for the most accurate predictions.
Artificial Intelligence (AI) isn’t just for helping to write letters and making phone trees even more annoying. ZestyAI is a company in Oakland, CA that uses AI for property risk analytics. They process climate science data and other conditions to get property-by-property insights for insurers. Instead of rating using only reactive damage assessments, insurers can use ZestyAI’s Z-HAIL, Z-WIND, and Z-STORM products to understand what the future may hold for a region, neighborhood, or specific property.
The Missouri Department of Insurance has just given regulatory approval to ZestyAI, giving Missouri insurance carriers a new, powerful tool to let them focus on policyholders while reducing potential future losses. It has yet to be determined how this new tool will effect Homeowners Insurance premiums in Missouri.
Insure with the People you Trust
No matter how slick AI gets, nothing will replace the in-person, one-on-one service you’ve come to expect from the agents at Kasmann Insurance. Even as the insurance industry is facing unprecedented changes, we remain committed to serving our community with integrity and professionalism, helping to protect you, your family, and your business from whatever might come next.
