Insurance Companies are Using Artificial Intelligence to Assess Climate and Fire Risk

AI Assessing insurance risk

By analysing large amounts of data, identifying patterns and trends, and making predictions about future market conditions, property values, and climate risk factors, AI is being used to help real estate professionals & insurance companies make more informed decisions and minimize risk.

Assessing Climate Risk Using AI

If you live in an area prone to wildfires or flooding, you’ll already appreciate how difficult it is to find adequate insurance cover. Even if a property is well protected, if it’s located close to a property at risk, in the same ZipCode, insurers will still run a mile. is one company pioneering the AI risk models. Their model evaluates each property individually, informing insurance underwriters on the risk factors associated with that specific property. Climate Risk Models

Current risk assessment models used by insurance companies provide inadequate protection against risk. They don’t use all the available data and often get it wrong, either incorrectly assuming a property is at risk, or failing to identify risk and suffering huge losses as a result. 

AI insurance risk assessment models are here to change that. offers 4 different climate risk models. 

  1. Fire – Trained using artificial intelligence (AI) on the world’s largest wildfire loss database, scores for each property based on its unique characteristics
  2. Hail – The first hail risk model to give insurers insights into a roof’s susceptibility to hail claims and the potential severity of those claims.
  3. Wind – sores each property for frequency & severity of wind claims.
  4. Flood – A predictive flood risk model that takes property characteristics, such as First Floor Elevation (FFE), into account to accurately assess flood risk for every building.


View the case studies on for real world example of how they’ve helped mitigate risk for insurance providers.

Other companies using AI to assess insurance risk

There are several companies that offer similar products and services to in the real estate technology industry. Some of the main competitors include:

  • CoStar Group: A leading provider of commercial real estate information, marketing, and analytic services. It offers a variety of products and services, including property data analysis, marketing tools, and investment software for commercial properties.

  • Reonomy: A real estate data and analytics company that provides property data and analytics to commercial real estate professionals, helping them identify investment opportunities and make more informed decisions.

  • CoreVest: A real estate investment and finance company that specializes in providing financing for rental properties and other real estate assets.

  • HouseCanary: A provider of real estate data, analytics, and technology to the residential real estate industry. It offers a variety of products and services, including property data analysis, marketing tools, and investment software for residential properties.


There are many other startups and established companies that offer similar services. AI leaves no stone unturned, and does the job so much faster than a human could ever do. These models identify links and patterns that may have been left unnoticed by the previously dominant methods. 

Will AI Insurance Insights Save customers money?

By using data and technology provided by the aforementioned companies, insurance providers can gain a deeper understanding of the properties they are insuring and the risks they may be exposed to. They can use this information to more accurately assess risk, develop more effective risk management strategies, and set more accurate insurance premiums, which can help customers save money.

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