Verisk Analytics Inc. has achieved a significant milestone by completing the California Department of Insurance's $(CDI.NZ)$ review of its Verisk Wildfire Model for the United States. This marks the first time a catastrophe model has successfully navigated the state's new regulatory framework, paving the way for data-driven risk assessment in California's insurance landscape. Developed by Verisk's Extreme Event Solutions business, the model uses advanced wildfire science and climate data to better assess wildfire risk for property insurance ratemaking. The CDI's approval is part of Commissioner Ricardo Lara's Sustainable Insurance Strategy, aimed at stabilizing the state's insurance market by providing insurers with a more accurate basis for pricing risk. This development comes as a response to insurers scaling back coverage in fire-prone regions due to unsustainable losses. The model's approval underscores Verisk's leadership in regulatory collaboration and its commitment to supporting insurance-driven resilience for property owners and communities.
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