Property insurtech Kin expands into cat-prone US state amid retreats

US property insurtech  Kin Insurance has expanded its operations into Arizona, a state known for rapid population growth and surging property values. Despite climate risks and projections of increasing temperatures, Kin sees an opportunity in the market as legacy insurance providers continue to retreat from catastrophe-prone states.

The Grand Canyon State marks Kin’s first move into the US Southwest, and builds upon its growth in coastal, catastrophe-prone states like Florida, Louisiana, South Carolina, Mississippi, and Alabama.

Arizona, a rapidly growing state in the US, is grappling with the challenges of extreme heat and an escalating risk of natural hazards such as wildfires. Projections, cited by Kin, suggest that Phoenix, the capital city, could experience over 100-degree temperatures for 132 days each year by 2060, “exacerbating the problem and putting more homes at risk”.

Kin’s claims its direct-to-consumer model eliminates the need for expensive external agents, enabling personalised policies and improved service. The insurtech uses its proprietary technology to better understand physical properties of homes and how they will be impacted by extreme weather.

“Climate change is increasing the number of dry days we see in the desert, and it’s creating a pressing need for improved home insurance options for the state’s longer wildfire seasons,” said Sean Harper (pictured), CEO of Kin.

Harper explained: “Every home is different and carries its own risk, so the cost of Arizona home insurance can vary greatly. That’s why we look at granular insurance data, like the home’s location, age, and construction type, to assess its actual risk, rather than the general risk for the area, and provide comprehensive coverage with accurate prices.”

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