FutureProof Technologies announced that it has entered into a definitive agreement to acquire Terrafuse AI, a wildfire risk analytics company known for its patented and highly granular wildfire prediction models. The acquisition combines Terrafuse’s wildfire forecasting technology with FutureProof’s AI-enabled underwriting and pricing platform, creating an integrated solution designed to enhance insurance availability and affordability in high-risk wildfire regions.
FutureProof has been focused on transforming property insurance in catastrophe-exposed markets through the use of automated, AI-driven underwriting and risk selection. Since launching in August 2024, the company has allocated over $1 billion in total insurable value, with a strong presence in the Southeastern United States. By incorporating Terrafuse’s predictive wildfire models, FutureProof plans to expand its presence deeper into Western states, where insurance availability has contracted significantly.
This acquisition follows a period of heightened volatility in losses for the property insurance sector. The January 2025 Los Angeles wildfires burned more than 57,000 acres, destroyed over 18,000 structures, and resulted in insured losses exceeding expected industry thresholds. The need for more accurate, property-specific wildfire risk evaluation tools has grown accordingly. Terrafuse has been operating in wildfire-prone insurance markets since 2021, consistently demonstrating predictive accuracy across multiple fire seasons. Its analytics platform incorporates daily-updating machine learning models built on environmental, structural, and weather-related variables, offering risk prediction at a highly localized resolution.
By integrating Terrafuse’s wildfire data and modeling into its underwriting engine, FutureProof intends to expand its AI-driven property insurance offerings across the West Coast, enabling more precise pricing and broader insurance availability for homeowners in wildfire-affected areas. The combined company aims to support insurance carriers, MGAs, and homeowners by improving capacity, enhancing transparency in risk selection, and incentivizing property-level resiliency improvements.
KEY QUOTES:
“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. Backed by validation from the insurance market including successful use by underwriters, Terrafuse’s machine learning models have been proven through multiple fire seasons and now helps extend FutureProof’s AI advantage into the West Coast market. This type of innovation, which leverages AI to bring new sources of capacity to resilient properties, is exactly what the market needs now.”
Alisa Valderrama, Co-Founder and Co-CEO, FutureProof Technologies
“Terrafuse’s machine learning models continuously improve, updated each day with more than fifty distinct variables — from property-level details like roof type and building materials to microscale environmental factors such as 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. By integrating this capability with FutureProof’s proprietary pricing engine, we help more homeowners in high-risk regions gain access to affordable wildfire insurance and advance our founding mission to harness AI and climate science to protect communities from disasters.”
Hunter Connell, Co-Founder and CEO, Terrafuse AI
