FutureProof to Acquire Terrafuse AI, Unifying Underwriting and Wildfire Risk Analytics
FutureProof Technologies has entered into a definitive agreement to acquire Terrafuse AI, bringing together an AI-driven underwriting and pricing platform with patented wildfire prediction technology. The goal: a single stack that improves pricing, selection, and capacity for properties in wildfire-affected states.
Timing matters. Following the devastating California wildfires in January 2025, the industry needs more viable coverage options and better risk discrimination-fast. Terrafuse's analytics have been active in wildfire-prone markets since 2021 and have shown strong predictive accuracy.
What Each Company Brings
FutureProof has built momentum since its August 2024 launch, writing over $1B in total insurable value with early traction in the Southeast. The acquisition is positioned to extend that performance to the West with sharper pricing for cat-exposed property.
"This acquisition represents a key moment for both companies and the insurance industry at large. We have built an excellent track record and written over $1B in total insurable value since we launched in August 2024, with an emphasis on the Southeast. By integrating Terrafuse's proven wildfire models with our AI-powered underwriting platform, we can bring a similarly incisive view to pricing cat-exposed property in the west," said Alisa Valderrama, Co-Founder and Co-CEO of FutureProof Technologies.
Inside Terrafuse's Wildfire Models
Terrafuse's models are updated daily with more than fifty variables-from roof type and building materials to wind direction, vegetation, vapor pressure deficit, fuel moisture, and humidity. "Where other wildfire models rely on coarse, infrequently updated vegetation maps or broad-scale weather grids, Terrafuse pinpoints the fine-grained, property-specific conditions that actually drive loss. This precision enables us to estimate burn probability and damage potential at 300-square-foot resolution," said Hunter Connell, Co-Founder and CEO of Terrafuse AI.
Integrated with FutureProof's pricing engine, this precision can help more homeowners in high-risk regions access affordable wildfire insurance and supports a mission grounded in AI and climate science to protect communities from disasters.
Why This Matters for Carriers, MGAs, and Brokers
- Sharper pricing and selection: Distinguish brush-adjacent but resilient risks from truly exposed properties at a property-specific level.
- Capacity allocation: Direct capacity to resilient homes and communities, improving portfolio quality without blanket moratoriums.
- Rate adequacy and reinsurance: Improve expected loss estimates and volatility views to support treaty negotiations and ceded cost decisions.
- Workflow impact: Feed risk signals into straight-through processes, speed up binds, and reduce unnecessary declines.
- Model governance: Daily-updated features and explainable inputs help with audit, regulator questions, and fair-pricing reviews.
- Distribution and appetite: Give producers a clearer, consistent appetite for West Coast business with fewer surprises at quote-to-bind.
Market Context
The California property market continues to face supply constraints and pricing pressure. Expanded, data-driven capacity-especially with high-resolution wildfire signals-can ease strain on homeowners and reduce reliance on last-resort options.
For additional context on wildfire risk and insurance, see resources from the NAIC and incident data from CAL FIRE.
What to Watch Next
Integration speed and model validation in new geographies will be key. Expect scrutiny on correlation to observed events, seasonality effects, and stability across fire seasons. If the combined platform proves accurate and repeatable, it should help reopen appetite in select ZIP codes without compromising loss ratio discipline.
Bottom Line
This deal combines underwriting execution with wildfire precision. If the integration delivers as described, insurers and MGAs gain a practical path to write profitable business in high-risk regions while giving homeowners real options.
Team Enablement
If your underwriting or product teams are building AI skills, these resources can help: AI courses by job role.
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