The suite includes ZestyAI’s proprietary Z-HAIL™, Z-WIND™, and Z-STORM™ models, which assess storm-related risks at the individual property level. With this latest approval, Michigan becomes the 17th state to authorize the use of ZestyAI’s storm suite, signaling growing regulatory trust in AI-driven solutions as climate-related losses continue to mount.
The approval comes at a critical time for Michigan, which has faced over $5 billion in insured storm losses since 2019, according to NOAA’s National Centers for Environmental Information. Hail and straight-line winds have been the leading causes of damage, with storms in 2024 alone generating more than $1.2 billion in insured losses. As severe weather events become more frequent and destructive, insurers are increasingly turning to next-generation tools to improve risk assessment and underwriting accuracy.
ZestyAI’s models offer a distinct departure from traditional territory-based risk assessments that rely on ZIP codes or broad regional data. Instead, the company’s AI-powered platform evaluates how local climate patterns interact with property-specific features to predict the likelihood and severity of storm-related claims. The Z-HAIL model estimates hail damage risk using indicators such as roof complexity, prior claims history, and accumulated damage, even distinguishing risk levels among neighboring homes. Z-WIND assesses vulnerability to wind damage by analyzing 3D roof models, structural complexity, and localized wind trends. Z-STORM combines both wind and hail insights to deliver a comprehensive picture of storm risk at the individual property level.
All three models are trained on extensive real-world claims data and offer insurers transparent, explainable risk scores. This allows carriers to make more informed decisions while improving policyholder communication and regulatory compliance. “As severe weather becomes more frequent and costly, insurers need tools that keep pace with evolving risks,” said Bryan Rehor, Director of Regulatory Affairs at ZestyAI. “This approval gives Michigan carriers access to precise, property-level insights that support smarter underwriting and help reduce preventable losses.”
The approval from Michigan adds to the growing momentum for ZestyAI’s storm risk solutions across the United States. With regulators in 17 states now endorsing the platform, ZestyAI continues to gain recognition as a key partner for insurers seeking to modernize their approach to climate and property risk. As the industry faces increasing pressure to address climate volatility and rising claims costs, ZestyAI’s AI-driven models aim to deliver greater resilience and risk precision at scale.
