Colorado FAIR Plan Partners with ZestyAI on Risk Analytics

The Colorado FAIR Plan, the state's insurer of last resort for property owners unable to secure coverage in the standard market, has partnered with ZestyAI, a property risk analytics firm that uses artificial intelligence to assess climate-related risks.

The collaboration will employ ZestyAI's suite of AI-driven risk assessment tools—Z-FIRE, Z-HAIL, and Z-WIND—to evaluate property-specific wildfire, hail, and wind exposure. 

These tools will support the Plan's risk-based pricing strategy and provide homeowners with targeted mitigation guidance.

“Our mission is to ensure every Coloradan has access to insurance that reflects their property's actual risk, not outdated assumptions,” says Kelly Campbell, Executive Director of the Colorado FAIR Plan. 

“ZestyAI's models will help us bring greater resiliency to the market while equipping homeowners with practical mitigation guidance.”

Expanding coverage through data-driven risk assessment

The Colorado FAIR Plan estimates nearly 30,000 families currently deemed high-risk under traditional assessment methods could become eligible for coverage through this initiative. 

By incorporating more granular property data, the Plan aims to align premiums with actual risk levels while providing homeowners with specific actions to reduce their exposure.

A core objective is to help property owners who invest in risk mitigation measures transition back to the standard insurance market where they can typically secure more comprehensive coverage at competitive rates.

Colorado regulators have made risk-based pricing and market transparency priorities in their efforts to stabilise the state's insurance market. 

Insurance Commissioner Michael Conway has spearheaded initiatives to integrate mitigation considerations into coverage decisions, which aligns with the FAIR Plan's adoption of ZestyAI's analytics platform.

“This partnership ensures risk assessments reflect real property conditions—not just broad classifications—so homeowners can access both coverage and meaningful mitigation guidance,” says Bryan Rehor, Director of Regulatory Affairs at ZestyAI. 

“Through AI-powered insights, we're helping homeowners secure risk-aligned coverage options.”

Technology behind the risk models

ZestyAI's risk platform combines multiple data sources to generate property-level risk insights. The system integrates aerial imagery, historical building permits, geospatial data and structural attributes to assess individual properties.

Insurers utilising these models can evaluate specific risk factors including vegetation proximity, roof condition, and building materials. 

These assessments inform underwriting decisions, pricing calculations, and mitigation recommendations provided to policyholders.

The platform processes this information through machine learning algorithms trained on historical loss data to generate risk scores that correlate with the probability of damage from various perils. 

This approach allows for more precise risk differentiation than traditional territory-based methods.

The partnership builds upon ZestyAI's previous implementation with the California FAIR Plan, which expanded coverage access for hundreds of thousands of homeowners in 2024. 

The Colorado Department of Insurance recently approved the use of the Z-FIRE, Z-HAIL, and Z-WIND models, reinforcing ZestyAI's position in the insurance risk modelling sector.

ZestyAI provides risk analytics to property and casualty insurers and regulatory bodies across the United States. 

Its models assess risks from climate-related perils such as wildfires and severe convective storms, as well as non-weather hazards. 

The company works with insurers to align premiums with actual risk levels, increase market accessibility, and encourage property mitigation measures.

“Our aim is to create a feedback loop where property owners understand their risks and take action to reduce them, which in turn makes coverage more available and affordable,” says Kelly Campbell. 

“This partnership represents a step towards a more resilient insurance system that benefits all Coloradans.”

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