With the development of modern technologies, some companies are shifting to incorporating risk models for natural and other hazards into their insurance programs for rating and underwriting. We were commissioned by ZestyAI to perform a case study of its hail risk model Z-HAIL, to determine how it could be used in rating to improve an insurance company’s ability to predict loss and classify risk. In this paper, we discuss: 

• Improving risk segmentation and pricing sophistication
• Important considerations for these methods
• A case study about ZestyAI’s Z-HAIL model

This report was commissioned by ZestyAI.