Lemonade Adopts ZestyAI Platform to Enhance Risk Assessment

ZestyAI, a company that specialises in AI-powered climate and property risk analytics, has announced that Lemonade has implemented the ZestyAI platform to optimise its underwriting for catastrophe perils in the United States.

The adoption builds upon Lemonade's existing technology infrastructure and underwriting processes, with the aim of enhancing risk assessment capabilities.

Advanced analytics for property assessment

ZestyAI's platform employs predictive analytics through AI models to examine the relationship between climatology, geography and structural characteristics of properties. 

The technology analyses each structure and roof individually to provide transparent risk assessments.

The integration enables Lemonade to access property-specific risk insights that can inform catastrophe risk mitigation decisions. 

ZestyAI has secured regulatory approvals in several states, which streamlines compliance requirements and allows Lemonade to deploy these models more rapidly.

“Since our launch, we've always been committed to using technology to create smarter, more accessible insurance products,” says Ori Hanani, Senior Vice President of Insurance at Lemonade. 

“In leveraging ZestyAI's advanced risk models, we're able to further support homeowners in securing comprehensive coverage for their most valuable assets, while also continuing to strengthen our underwriting capabilities as we continue to grow.”

Strategic alignment on climate risk

The partnership represents a mutual approach to addressing climate risk challenges within the insurance sector. 

Both companies focus on using data-driven insights to improve risk assessment in an environment of increasing climate volatility.

“Lemonade is a natural partner for ZestyAI,” says Attila Toth, Founder and CEO of ZestyAI. 

“Their innovative approach to insurance and customer-centricity aligns perfectly with our commitment to provide actionable insights that drive smarter risk decisions.”

This collaboration aims to establish new practices for resilience and efficiency within insurance underwriting operations.

Company backgrounds

Lemonade provides multiple insurance products including renters, homeowners, car, pet and life insurance. 

The company operates as a full-stack insurance carrier in both the United States and European Union markets, using artificial intelligence to replace traditional insurance processes with automated systems that reduce paperwork and increase processing speed.

As a Certified B-Corp, Lemonade distributes unused premiums to non-profit organisations selected by its customer community through an annual Giveback programme. 

The company currently operates in the United States, Germany, the Netherlands, France and the United Kingdom.

ZestyAI develops risk assessment technology used by property and casualty insurers and regulators throughout the United States. 

The company combines AI models with data sources to deliver property-level risk information for various perils including wildfires, severe convective storms and non-weather hazards.

The company's risk insights are validated against climate science and historical loss data, enabling insurers to improve underwriting decisions, rating precision and reinsurance outcomes. 

ZestyAI aims to create a more balanced insurance market by helping carriers align premiums with actual risk levels, increase market accessibility and prioritise mitigation strategies.

“In leveraging ZestyAI's advanced risk models, we're able to further support homeowners in securing comprehensive coverage for their most valuable assets, while also continuing to strengthen our underwriting capabilities as we continue to grow,” Ori concludes.

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