Startup Battlefield: Session 1 - Delos

TL;DR

Delos is a property insurance company that utilizes AI technology and proprietary models to provide coverage for low-risk homes in catastrophe regions.

Transcript

[Applause] hi everybody this is Stan stan is 70 and built himself a retirement home outside of San Diego fortunately his home didn't burn in the devastating 2017 and 2018 wildfires however his insurance company refused to renew his coverage and the only other option that he could find charged him $24,000 a year with $100,000 deductible and Stan's n... Read More

Key Insights

• 🥺 Insurance companies face challenges in accurately assessing the risk of homes in wildfire-prone areas, leading to a lack of coverage for many homeowners.
• ✳️ Delos addresses this opportunity by utilizing proprietary wildfire risk models that accurately identify low-risk homes.
• 👪 The company provides an active risk mitigation service to homeowners, offering suggestions on how to protect their homes from wildfire.
• 🥺 Delos' model has attracted the attention of many insurance companies, leading to partnerships and sales of analytic side products.
• 💨 The company aims to reduce wildfire losses by providing homeowners with valuable information about their risk and ways to protect themselves.
• 😘 Delos' mission is to provide coverage for low-risk homes in catastrophe regions while ensuring the company remains profitable.
• 👷 The company has ethical considerations regarding data privacy and works closely with CAL FIRE to assist in new construction and ensure homes are built to withstand wildfires.

Questions & Answers

Q: Why do insurance companies refuse coverage for homes in wildfire regions?

Insurance companies face challenges in accurately assessing wildfire risk due to inaccurate third-party models, leading to a lack of coverage in wildfire-prone areas.

Q: How does Delos' model outperform industry-leading wildfire models?

Delos' proprietary wildfire model accurately predicted the risk of homes burning in 2017 and 2018 wildfires, allowing the company to identify low-risk areas and build a profitable portfolio of homes.

Q: What data inputs are used in Delos' AI algorithm?

Delos incorporates temperature, wind, satellite imagery, micro prediction models, fire weather models, wildfire simulations, and probabilistic ignition models into its AI algorithm.

Q: Is Delos focused solely on wildfire coverage?

Delos is initially launching with wildfire coverage but aims to expand to include hurricane coverage in the future.

Summary & Key Takeaways

• Delos addresses the challenge of insurance companies refusing coverage for homes in wildfire-prone areas due to inaccurate wildfire risk models.

• The company has developed its own proprietary wildfire risk models that accurately assess the risk of homes burning.

• Delos offers insurance for low-risk homes in high-risk areas and provides an active risk mitigation service to homeowners.