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Embedded insurance complements traditional channels by reaching previously inaccessible customers with simple, digital-first products.

Many homes that burned in the Eaton Fire lay outside the boundaries of state- or local-designated "very high" fire hazard severity zones, Bloomberg Green found after analyzing inspection reports by the California Department of Forestry and Fire Protection, or Cal Fire, for more than 20,000 residential properties in areas affected by the recent wildfires.

The three largest property and casualty insurtech deals had an average round amount of more than $50 million, according to CB Insights.

Wildfire presents a significant challenge to California's property insurance market, and the impact is becoming more frequent and costly over time. Recently, we examined the current state of the California (CA) homeowners insurance market by exploring key components of the ecosystem, including the role of regulators, the CA FAIR Plan, and the involvement of the surplus lines markets, as well as current developments and potential implications of the fires in Los Angeles.

Between the estimated damages in Los Angeles and rising home insurance prices, policyholders are left wondering how the market will fare in 2025.

The four largest deals had an average round amount of $46 million.

Increasing weather-related risks and costs combined with companies pulling out of some states, is affecting the remaining carriers and state insurers.

In total, municipal bond insurers wrapped $41.09 billion of debt in 2024, an increase from the $35.38 billion insured in 2023, according to LSEG data.

NEXT will use ZestyAI's property and wildfire models in its risk assessment processes.

Though consumers are open to the use of AI in severe weather risk monitoring, trust and transparency is key, according to a 2025 Insurity report.