As drought drives an early California Wildfire season, Delos affirms its commitment to the California homeowners' insurance market

Some nervous forecasts are for a record year of wildfire activity; Delos continues to use leading-edge technologies to underwrite California homes in wildfire-stressed areas

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Delos Insurance Solutions

Jun 29, 2021, 11:00 ET

SAN FRANCISCO, June 29, 2021 /PRNewswire/ -- The 2020 California wildfire season had some unprecedented behavior, and due to continuing effects of climate change and severe drought conditions, 2021 could offer even more surprises, according to wildfire experts at Delos Insurance Solutions, a San Francisco-based homeowners' insurance MGA. The unexpected changes over the last five years have driven many insurance carriers to pull back from large segments of the California homeowners insurance market, creating a crisis of insurance availability and affordability for millions of California families living in wildfire-stressed areas.

Many insurance carriers have decided that homes in areas potentially exposed to wildfire are uninsurable or not insurable at affordable rates. As a result, some homeowners have seen their policies non-renewed, while others have experienced sharp premium increases. Delos research indicates that it doesn't have to be that way. Delos uses satellite imagery and models based on machine learning algorithms to quantify a home's actual wildfire exposure – differentiating between "exposed" properties and properties that are in stressed areas but are far less exposed to wildfire. Not every home in wildfire-stressed areas is insurable, but many homes are less vulnerable and should be eligible for less costly coverage.

"More than ever, California homeowners need reliable insurance protection at a more affordable price," according to Kevin Stein, co-founder and CEO of Delos Insurance Solutions. "Unfortunately, during this time of crisis, when it is most needed, reasonably-priced insurance can be nearly impossible to find. As an MGA, focused exclusively on the needs of homeowners in wildfire-stressed zones, we remain committed - along with our carrier partners - to insuring homes in California regions that have few options due to even the slightest perception of exposure to wildfire. Our goal is to grow our network of carriers and reinsurers so that we can offer peace of mind to even more California homeowners."

David Shew, with 31 years in fire suppression experience and a retired CalFire Chief, is an advisor to Delos. "Using satellite imagery and proprietary modeling, Delos is able to underwrite homes in areas that have been largely abandoned by much of the rest of the insurance industry. As we head into the new fire season that has all of the Western US on edge, the market requires a different underwriting model," said Shew. "Rather than an approach that rests on traditional methods, the increasing complexity and variability of this risk requires the enhanced technology, data, and analytics that Delos has pioneered."

About Delos Insurance Solutions

Delos Insurance Solutions uses cutting-edge technology to offer insurance protection to homeowners in communities abandoned by other insurers because of wildfire risk. Founded in San Francisco in 2017 by aerospace engineers, Delos uses satellite imagery and artificial intelligence to identify insurable homes within territories deemed too risky by the rest of the insurance market. Delos is a Managing General Agent (MGA) offering policies on behalf of Canopius US Insurance, which is rated "A-" (Excellent) by AM Best.

SOURCE Delos Insurance Solutions