Verisk Sets Precedent as First to Complete Wildfire Catastrophe Model Review Process in California for Insurance Ratemaking
Verisk (NASDAQ:VRSK) has achieved a significant milestone as the first company to complete the California Department of Insurance's (CDI) review of its Wildfire Model for insurance ratemaking purposes. The model, developed by Verisk's Extreme Event Solutions business, successfully passed the Pre-Application Required Information Determination (PRID) process, marking a historic moment in California's insurance landscape.
The approval enables California insurance carriers to utilize a forward-looking wildfire model for risk assessment for the first time, potentially improving market stability and insurer participation in wildfire-prone areas. The model, which incorporates decades of wildfire science, engineering expertise, and climate data, is already approved in Nevada and accounts for both property-level and community-level mitigation efforts.
Verisk (NASDAQ:VRSK) ha raggiunto un traguardo importante diventando la prima azienda a completare la revisione del suo Modello Incendi Boschivi da parte del Dipartimento delle Assicurazioni della California (CDI) per scopi di determinazione dei premi assicurativi. Il modello, sviluppato dalla divisione Extreme Event Solutions di Verisk, ha superato con successo il processo di Pre-Application Required Information Determination (PRID), segnando un momento storico nel panorama assicurativo californiano.
Questa approvazione consente per la prima volta alle compagnie assicurative californiane di utilizzare un modello incendi boschivi proiettato al futuro per la valutazione del rischio, migliorando potenzialmente la stabilità del mercato e la partecipazione degli assicuratori nelle aree soggette a incendi. Il modello, che integra decenni di conoscenze sulla scienza degli incendi boschivi, competenze ingegneristiche e dati climatici, è già approvato in Nevada e considera sia le misure di mitigazione a livello di singola proprietà sia a livello comunitario.
Verisk (NASDAQ:VRSK) ha alcanzado un hito significativo al ser la primera empresa en completar la revisión del Departamento de Seguros de California (CDI) de su Modelo de Incendios Forestales para fines de tarificación de seguros. El modelo, desarrollado por el negocio de Soluciones para Eventos Extremos de Verisk, superó con éxito el proceso de Determinación de Información Requerida Previa a la Solicitud (PRID), marcando un momento histórico en el panorama asegurador de California.
Esta aprobación permite a las aseguradoras de California utilizar por primera vez un modelo prospectivo de incendios forestales para la evaluación del riesgo, lo que podría mejorar la estabilidad del mercado y la participación de aseguradoras en áreas propensas a incendios. El modelo, que incorpora décadas de ciencia sobre incendios forestales, experiencia en ingeniería y datos climáticos, ya está aprobado en Nevada y considera tanto los esfuerzos de mitigación a nivel de propiedad como a nivel comunitario.
Verisk (NASDAQ:VRSK)는 캘리포니아 보험국(CDI)의 보험 요율 산정을 위한 산불 모델 검토를 최초로 완료한 회사로 중요한 이정표를 세웠습니다. Verisk의 극한 사건 솔루션 사업부에서 개발한 이 모델은 사전 신청 필수 정보 결정(PRID) 절차를 성공적으로 통과하여 캘리포니아 보험 업계에 역사적인 순간을 만들었습니다.
이번 승인을 통해 캘리포니아 보험사는 처음으로 미래 지향적인 산불 모델을 위험 평가에 활용할 수 있게 되어, 산불 위험 지역에서 시장 안정성과 보험사 참여가 향상될 가능성이 있습니다. 수십 년간의 산불 과학, 공학 전문 지식 및 기후 데이터를 통합한 이 모델은 이미 네바다주에서 승인되었으며, 개별 자산 및 지역사회 차원의 완화 노력을 모두 반영합니다.
Verisk (NASDAQ:VRSK) a franchi une étape importante en devenant la première entreprise à finaliser l'examen de son Modèle d'Incendie de Forêt par le Département des Assurances de Californie (CDI) à des fins de tarification d'assurance. Ce modèle, développé par la division Solutions Événements Extrêmes de Verisk, a réussi le processus de Détermination des Informations Requises Avant Demande (PRID), marquant un moment historique dans le secteur de l'assurance en Californie.
Cette approbation permet aux assureurs californiens d'utiliser pour la première fois un modèle prospectif d'incendie de forêt pour l'évaluation des risques, ce qui pourrait améliorer la stabilité du marché et la participation des assureurs dans les zones sujettes aux incendies. Le modèle, qui intègre des décennies de science des incendies, d'expertise en ingénierie et de données climatiques, est déjà approuvé au Nevada et prend en compte les efforts de mitigation au niveau des propriétés ainsi qu'à l'échelle communautaire.
Verisk (NASDAQ:VRSK) hat einen bedeutenden Meilenstein erreicht, indem es als erstes Unternehmen die Überprüfung seines Wildfire-Modells durch das California Department of Insurance (CDI) für versicherungsmathematische Zwecke abgeschlossen hat. Das Modell, entwickelt von Verisks Geschäftsbereich Extreme Event Solutions, hat erfolgreich den Pre-Application Required Information Determination (PRID)-Prozess bestanden und markiert damit einen historischen Moment in der Versicherungslandschaft Kaliforniens.
Die Genehmigung ermöglicht es kalifornischen Versicherern erstmals, ein zukunftsorientiertes Wildfire-Modell zur Risikobewertung zu verwenden, was die Marktstabilität und die Teilnahme von Versicherern in brandgefährdeten Gebieten verbessern könnte. Das Modell, das jahrzehntelange Wissenschaft zu Waldbränden, ingenieurtechnisches Fachwissen und Klimadaten einbezieht, ist bereits in Nevada zugelassen und berücksichtigt sowohl Maßnahmen zur Schadensminderung auf Immobilien- als auch auf Gemeindeebene.
- First catastrophe model to complete California's regulatory review for insurance ratemaking
- Model already approved by Nevada Division of Insurance
- Potential to improve insurance market stability in wildfire-prone areas
- Could encourage greater insurer participation in previously underserved areas
- Several major insurers have already scaled back coverage in California due to unsustainable losses
Insights
Verisk's landmark wildfire model approval in California creates competitive advantage and opens revenue opportunities in a disrupted insurance market.
This regulatory milestone represents a significant competitive advantage for Verisk in California's insurance analytics market. As the first catastrophe model to complete the state's new Pre-Application Required Information Determination (PRID) process, Verisk gains first-mover advantage in a state desperate for insurance solutions amid escalating wildfire risks.
The timing is particularly strategic as several major insurers have scaled back California coverage citing unsustainable losses and outdated rating tools. Verisk's model addresses precisely these concerns by providing the data-driven risk assessment insurers need to return to underserved areas and price policies more accurately.
What makes this development truly significant is that California's Department of Insurance has historically been conservative about catastrophe modeling for ratemaking. This precedent-setting approval signals a fundamental shift in how insurance risk will be evaluated in America's largest insurance market.
Verisk's model is particularly valuable because it incorporates both property-level and community-level mitigation efforts - critical factors for accurately pricing wildfire risk. The model's prior approval in Nevada (February 2025) suggests Verisk is strategically expanding its regulatory footprint in wildfire-prone Western states.
The comprehensive review process, including public input and consumer advocate participation, gives Verisk's model additional credibility with both regulators and insurers. This breakthrough positions Verisk to capture significant market share as California insurers scramble to implement more sophisticated pricing methodologies in a challenging market environment.
Milestone underscores Verisk’s leadership in modeling and regulatory collaboration to support insurance-driven resilience for property owners and communities
JERSEY CITY, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- In a milestone for California’s evolving insurance landscape, the California Department of Insurance (CDI) has completed its review of the Verisk Wildfire Model for the United States for use by insurers in assessing wildfire risk and property insurance ratemaking. This is the first time a catastrophe model has successfully completed the evaluation under the state’s new regulatory framework, ushering in a new era of data-driven risk assessment in California.
Developed by the Extreme Event Solutions business of Verisk (Nasdaq: VRSK), a leading global analytics and data provider, the Verisk Wildfire Model for the United States leverages decades of wildfire science, engineering expertise, and climate data to provide a forward-looking view of risk. It was extensively reviewed through the CDI’s Pre-Application Required Information Determination (PRID) process as part of Commissioner Ricardo Lara’s Sustainable Insurance Strategy aimed at stabilizing the state’s insurance market. This included a review process open to the public, a PRID which included consumer advocates, and an additional public webinar.
With the PRID review completed, California insurance carriers can, for the first time in the state's history, use a robust, forward-looking wildfire model to more accurately assess wildfire risk—supporting a more resilient insurance market and encouraging greater insurer participation, which can benefit consumers in wildfire-prone areas. Catastrophe models are accepted as a part of ratemaking in all states; the Verisk Wildfire Model for the United States is already approved by the Nevada Division of Insurance issued in February 2025.
“This is a transformative moment for the insurance industry and for California homeowners and businesses,” said Rob Newbold, president of Verisk Extreme Event Solutions. “We’re proud to be the first catastrophe modeler to work with the California Department of Insurance to offer a modeled assessment of wildfire risk and contribute to efforts to bring stability to the insurance market. The latest version of the model, released in 2024, reflects decades of scientific research and engineering expertise, and we believe it will be a powerful tool for insurers navigating the complexities of wildfire risk in a changing climate.”
The determination comes amid growing concern over insurance availability in fire-prone regions. Several major insurers have scaled back coverage in California, citing unsustainable losses and outdated rating tools. By allowing the use of catastrophe models, the CDI aims to give insurers a more accurate and actuarially sound basis for pricing risk—while encouraging them to return to underserved areas. Verisk’s model incorporates advanced science and data and accounts for both property-level and community-level mitigation efforts.
“This approval is the result of years of collaboration, transparency, and rigorous review,” said Dr. Julia Borman, assistant vice president and director of regulatory at Verisk Extreme Event Solutions. “We’re grateful to the CDI for their thoughtful engagement throughout the process and to our clients for their support. This milestone underscores Verisk’s commitment to helping insurers and regulators make informed, data-driven decisions that benefit both the industry and the communities they serve.”
For more information about Verisk’s wildfire modeling capabilities, visit: Verisk Wildfire Model for the U.S.
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About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
Media contact Mary Keller Verisk 339-832-7048 mary.keller@verisk.com
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