How Moody’s Acquisition of CAPE Will Redefine Property Risk

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Moody's acquisition of CAPE Analytics will enhance property risk management (Credit: Shutterstock)
Moody’s acquisition of CAPE Analytics will enhance its capabilities in property risk assessment to unlock innovative solutions that offer precise insights

Organisations must offer comprehensive property risk assessment capabilities to secure accurate underwriting and premium pricing.

By doing so, insurers can evaluate risks in-depth and consider factors like susceptibility to environmental hazards, building materials and location.

This will enhance customer trust by providing tailored coverage solutions, improve financial stability and reduce the likelihood of unexpected losses. 

A global integrated risk assessment firm, Moody’s, is set to acquire a geospatial analytics company, CAPE Analytics. This acquisition is predicted to close in the first quarter of 2025.

This acquisition will mean that Moody’s can improve its ability to leverage AI and provide geospatial technology and advanced property risk intelligence. 

Michael Steel, General Manager of Insurance Solutions at Moody’s, highlights the benefits this acquisition will create: “With losses from weather hazards increasing in frequency and severity, we see the insurance industry standing at a crossroads, and as traditional risk assessment and management methods are being challenged, innovative solutions that offer more precise, actionable insights are required.​

"To move further on our core mission and help customers make better, faster decisions amid uncertainty, our decision to acquire CAPE® recognises the transformative power of geospatial artificial intelligence AI around understanding property risk, as CAPE’s platform uniquely provides instant risk insights at the individual address level through a proprietary AI model, back-tested and validated on proprietary insurance claims data.

"Recognising the significant synergy between Moody's catastrophe risk modelling experience and CAPE's geospatial AI analytics, we believe this introduces a new era for property loss estimates in the insurance industry."

Michael Steel, General Manager of Insurance Solutions at Moody's

Why is property risk management evolving?

The combination of increasing climate risks, technological advancements and the growing demand for precise, data-driven underwriting and risk assessment solutions has resulted in property risk management evolving significantly.

Insurers are having to reassess coverage strategies and risk models due to the increased severity and frequency of extreme weather events as a result of climate change, such as wildfires, floods and hurricanes. 

This, combined with the fact that population growth has increased the risk of property damage in high-risk areas and technological advancements, such as AI, geospatial analytics and machine learning, have allowed insurers to assess risks more effectively, has meant that insurers must enhance their operations to maintain their competitive edge. 

These pressures in the insurance industry are catalysing the movement to more dynamic and precise property risk management practices.

Why is property risk management increasing?
  • Climate change
  • Technological advancements
  • Urbanisation
  • Regulatory pressures for more transparency
  • Evolving customer expectations
  • Rise of predictive analytics
  • Aging infrastructure
  • Economic inflation
  • Cybersecurity risks

Meet CAPE Analytics 

CAPE Analytics is a geospatial analytics company that specialises in AI-powered property risk intelligence.

The organisation analyses the attributes of physical properties and their surrounding environments by leveraging advanced machine learning and geospatial imagery.

By producing address-specific and instant insights on factors like building materials, roof condition and vegetation proximity, CAPE Analytics can ensure organisations can effectively assess their risks. 

CAPE secures scalability and accuracy by utilising computer vision to retrieve data from ground, aerial and satellite imagery.

The organisation continues to redefine property risk management in the insurance industry through its innovative approach and accurate intelligence. 

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What will this mean for the insurance industry?

Moody’s acquisition of CAPE Analytics will meet the organisation’s strategy to enhance its analytics and data capabilities in the insurance industry. 

By integrating AI-powered geospatial intelligence into its risk modelling capabilities, Moody will enhance its insurance underwriting and property risk assessment.

In our increasingly digital world, this acquisition will redefine property risk management in many ways, including:

Enhanced property risk assessment

By integrating CAPE Analytics’ capabilities with geospatial data and advanced AI, insurers will improve their pricing strategies and underwriting accuracy by improving the precision of property risk assessments.

Improved risk modeling

Moody's will access a more comprehensive view of property risks by integrating CAPE’s data into its original risk models. This will allow insurers to enhance risk management practices by understanding potential exposures effectively. 

Advancement in AI and Geospatial technologies 

This acquisition will highlight the importance of geospatial technologies and AI in the insurance sector and secure Moody’s position as a trailblazer in property risk intelligence. 

Rob Fauber, President and CEO of Moody’s

Rob Fauber, President and CEO of Moody’s, explains: “I continually hear from our customers that they are seeking more precise and actionable information as they evaluate an evolving set of risks.”

“By combining our CAT risk models with CAPE’s AI-powered property risk intelligence, we will provide our customers with the most advanced property risk analytics available in the industry, enhancing insights and decision-making across the insurance lifecycle.”


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