Sacramento IT News

Fintech’s Wildfire Fighter: This Reinsurer is using AI to make California Insurance Affordable

This year, California wildfires have torched 1.4 million acres, an area bigger than Connecticut.  Nine thousand homes and other structures have burned. While brand-name insurers like Allstate ALL -0.7% and State Farm are suffering from a surge in homeowner insurance claims, another industry is gasping for air behind the scenes: reinsurance. Reinsurers cover companies like Allstate when they see big losses, typically paying out 60% of claims for catastrophic events. To make up for lost profits and rising risks, reinsurers in California have raised their prices by about 600% over the past five years. San Francisco startup Kettle thinks its sophisticated statistical models can predict wildfires better than any other reinsurer, and it plans to offer lower prices as a result. It officially laun...[Read More]