In an era where climate risks are increasing and homeowners face rising insurance challenges, there’s an urgent need for better risk assessment tools. Extreme weather events like wildfires, hurricanes, and floods are becoming more frequent and severe, causing insurers to raise premiums, reduce coverage, or exit high-risk areas altogether. Many homeowners are left with limited options and little clarity on how to mitigate risks effectively.
At Tera Analytics, we’re tackling this challenge head-on by combining geospatial analytics and Generative AI to revolutionize property risk assessment. Our project—part of the Amazon Web Services (AWS)/ Taylor Geospatial Institute (TGI) Generative AI for Geospatial Challenge—leverages cutting-edge AI-powered risk scoring models to provide homeowners and insurers with personalized, data-driven insights for smarter decision-making.
The traditional insurance industry relies on broad, zip-code-level risk assessments, which often fail to capture the unique vulnerabilities of individual homes. But climate change and urban expansion have made risk hyper-local, meaning that two houses on the same street may have vastly different exposure levels to wildfires or hurricanes.
Some of the biggest challenges facing homeowners today include:
✅ Rising insurance premiums – Insurers are increasing rates or pulling out of risky markets.
✅ Lack of transparency – Homeowners often don’t know their true risk exposure.
✅ Unclear mitigation guidance – No clear answers on which home improvements actually reduce risk or lower premiums.
This is where our AI-driven property risk scoring system comes in.
Our approach is inspired by the FICO credit score model—but instead of assessing financial risk, we analyze property vulnerability to natural disasters. Using high-resolution aerial and satellite imagery, AI-powered models evaluate key risk factors, including:
🔥 Wildfire Risk Factors
🌪️ Hurricane Risk Factors
By integrating Generative AI, we can create personalized risk reports that not only provide an objective risk score but also simulate the impact of mitigation strategies.
Generative AI takes risk assessment a step further by offering homeowners and insurers interactive, scenario-based insights. Instead of just receiving a static risk score, users can:
📊 Generate custom risk reports – AI analyzes a property’s specific vulnerabilities and provides a homeowner-friendly summary.
🔄 Run "what-if" simulations – Homeowners can explore how different mitigation strategies (like upgrading a roof or clearing vegetation) would reduce their risk score.
🤖 Chat with an AI risk assistant – Our AI-powered chatbot allows users to ask questions like:
These insights empower homeowners to take action and help insurers make more accurate, fairer pricing decisions.
As part of the AWS/TGI Generative AI for Geospatial Challenge, we are leveraging AWS cloud infrastructure to process large-scale geospatial datasets efficiently. Our initial risk scoring model is being tested on Los Angeles County properties, where wildfire hazards are a growing concern. Once validated, we plan to scale this AI-powered risk assessment framework to statewide and national levels, ensuring millions of homeowners can access actionable, personalized risk insights.
🚀 Next Steps:
🔹 Validate AI-powered risk scoring models with real-world loss data.
🔹 Engage insurers and climate experts to refine scoring accuracy.
🔹 Expand coverage to more high-risk areas across the U.S.
By harnessing the power of Generative AI and geospatial analytics, we’re not just assessing property risks—we’re empowering homeowners, insurers, and policymakers to build more resilient communities. Our project is paving the way for a data-driven, transparent, and proactive approach to climate risk management.
🔗 Want to learn more? Visit us at www.teraanalytics.xyz or reach out at business@teraanalytics.xyz.
Together, let’s turn imagery into insights—and insights into impact. 🚀