Cytora & AISIX Partner to Enhance Wildfire Risk Assessment

Commercial insurance platform Cytora has integrated wildfire risk data from climate analytics firm AISIX Solutions into its underwriting system.

The move comes as insurers face mounting pressure to account for climate risks in their underwriting processes, with wildfire losses growing in frequency and severity across multiple markets.

Regulators have increased scrutiny of insurance firms' climate exposure, with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and International Sustainability Standards Board (ISSB) now requiring more detailed risk reporting from financial institutions.

The partnership will give commercial insurers using Cytora's platform direct access to AISIX's Wildfire 3.0 models through an API connection. API, or Application Programming Interface, enables different software systems to exchange data automatically without human intervention.

Insurance industry analysts note that climate data has traditionally been difficult to incorporate into standard underwriting workflows, creating a technical barrier for firms attempting to improve their climate risk assessment capabilities.

Data integration targets underwriting efficiency

Sources familiar with the implementation say the integration will allow underwriters to assess wildfire exposure at both individual asset and portfolio levels without leaving their existing systems.

The AISIX models incorporate historical fire activity alongside geographic data to produce risk assessments that can be applied across commercial property portfolios.

Cytora has been expanding its data partnerships in recent months, positioning its platform as a central hub for commercial insurance data. 

The company recently announced a significant collaboration with global insurer Chubb and launched an updated version of its platform that utilises agentic AI for risk assessment.

Agentic AI refers to autonomous artificial intelligence systems that can perform complex tasks with minimal human guidance, representing an advancement beyond traditional automation tools previously used in the insurance sector.

Juan de Castro, COO at Cytora, explains the strategic rationale behind the partnership: “Climate risk factors are increasingly becoming critical components in insurance underwriting. 

“Through our partnership with Aisix, we're making it easier for insurers to embed the latest wildfire insights directly into their workflows, empowering smarter and faster decisions with access to the most advanced data and insights available.”

Industry observers note that the integration addresses a growing need in the commercial insurance market for more sophisticated climate risk tools that can be deployed without significant IT investment or workflow disruption.

Market responds to growing wildfire threat

The partnership reflects the insurance industry's broader response to the increasing threat of wildfires globally. Climate scientists have documented an expansion of wildfire seasons and intensity across multiple regions, creating challenges for insurers' traditional risk models.

In several markets, insurers have faced regulatory intervention after withdrawing coverage from wildfire-prone areas, highlighting the tension between actuarial assessment and market access.

AISIX's data is structured to align with regulatory reporting requirements, potentially streamlining compliance processes for insurers facing increased climate disclosure mandates.

The Wildfire 3.0 models allow for real-time risk assessment updates, enabling more responsive underwriting decisions as conditions change during fire seasons.

For commercial property owners, the integration could potentially provide more nuanced risk pricing in areas previously considered broadly high-risk, according to insurance brokers familiar with both platforms.

Market analysts suggest that data partnerships like this one may become increasingly common as insurers seek to enhance their technical capabilities without developing proprietary systems.

Mihalis Belantis, CEO of Aisix Solutions, highlighted the importance of asset-level risk assessment: “This partnership with Cytora will give insurers the clarity and foresight needed to make informed, strategic, and sustainable underwriting decisions. 

“As wildfire events increase in frequency and intensity, the ability to quickly assess risk at the asset level is vital. We're delighted to be working together in helping insurers build resilience in an increasingly complex risk environment.”

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