FMIWV Implements ZestyAI Risk Analytics

Farmers and Mechanics Mutual Insurance Company of West Virginia (FMIWV) has partnered with ZestyAI to improve its underwriting processes and risk-based pricing mechanism.

ZestyAI, a risk analytics platform that uses artificial intelligence to assess property risk, will provide FMIWV with their Z-PROPERTY Location Insights product to address challenges in accessing reliable property data.

Roof Age Discrepancies Drive Technology Adoption

The partnership aims to solve a persistent problem in property insurance: the accurate assessment of roof condition. Roof claims constitute the largest portion of insurance losses, yet carriers often rely on customer-provided information or costly physical inspections.

Recent industry research indicates 15 per cent of roofs are at least eight years older than reported in insurance applications, creating a significant data gap that affects risk assessment accuracy.

"After evaluating several options in recent years, we chose ZestyAI based on their strong coverage and ease of implementation," says Dan Otto, Senior Vice President and Chief Financial Officer at FMIWV.

"Getting started using the technology was easy. We're particularly focused on using their property insights to provide additional underwriting information for new business and renewals."

The implementation will enable FMIWV to identify high-risk properties earlier in the underwriting process, potentially allowing for preventative measures before losses occur.

The company expects the technology to enhance risk selection through objective data while reducing reliance on on-site assessments.

This should translate to lower inspection costs and faster turnaround times for policy decisions, while also aligning premium pricing more accurately with actual risk exposure.

Regulatory Approval Expands Market Reach

The announcement follows regulatory developments for ZestyAI in neighbouring states. The company's Severe Convective Storm suite of products – including tools that assess hail, wind and storm risk – recently received approval from the Ohio Department of Insurance.

This approval brings the total to 16 states where ZestyAI's storm analytics tools can be implemented by carriers.

The expansion is relevant given Ohio's increasing frequency of severe weather events, having experienced 36 billion-dollar loss storm events over the past five years according to the National Oceanic and Atmospheric Administration's National Centers for Environmental Information (NCEI).

This represents more severe storms in five years than in the previous twenty years combined, when the state recorded 33 such events.

The partnership demonstrates how regional carriers can utilise advanced technology typically associated with larger national insurers. By implementing data analysis, FMIWV aims to enhance operational efficiency while maintaining its focus on serving West Virginia policyholders.

For FMIWV, the implementation represents a significant technological advancement. As the largest property and casualty carrier domiciled in West Virginia, the company has provided coverage since 1877, specialising in homeowners, farm-owners and business-owners policies.

The adoption of artificial intelligence tools marks a departure from traditional insurance assessment methods while attempting to preserve the company's focus on customer service.

ZestyAI positions its technology as a solution for insurers facing increasing climate risk and property valuation challenges.

The company's platform combines artificial intelligence models with multiple data sources to deliver risk insights for perils including wildfires, severe storms and non-weather hazards.

"FMIWV is showing how regional carriers can lead with data-driven underwriting that improves operations and elevates the customer experience," says Attila Toth, Founder and Chief Executive Officer of ZestyAI.

"By grounding decisions in reliable, property-level data, they're improving efficiency, reducing risk, and raising the bar for underwriting and rating precision."

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