Moody’s has agreed to acquire Cape Analytics, which develops geospatial artificial intelligence for insurance providers
Moody’s Financial Services Corporation Announce On Monday I agreed to take it over CAPE Analyticsa startup working in the field of geospatial artificial intelligence, for an undisclosed sum.
The transaction, which is expected to close in the first quarter, subject to customary closing conditions, will provide Moody’s access to Cape’s geospatial AI analytics technology for insurance underwriting. Moody’s CEO Rob Fauber said the technology plans to create a real estate database capable of providing “address-specific” risk insights to its insurance clients.
“By combining our risk models with CAPE’s AI-powered real estate risk information, we will provide our clients with the most advanced real estate risk analytics available in the industry, enhancing insights and decision-making across the insurance sector,” Fauber said in a statement. Life cycle.”
Cape’s exit comes as the insurance industry ramps up its reliance on artificial intelligence and predictive analytics technologies. A 2024 reconnaissance Koning, the insurance asset manager, found that 77% of insurers are at some point in deploying AI, an increase of 16 percentage points from the previous year. With one appreciationThe global AI in insurance market will be worth $79.86 billion by 2032.
Suat Gedikli and Ryan Kottenstit founded Cape in Mountain View, California, in 2014. Kottenstit was previously a senior engineer at BMW, then a director at Khosla, while Gedikli was a research engineer at robotics technology incubator Willow Garage.
Cape enables underwriters to improve their underwriting process by helping them use artificial intelligence and geospatial imagery to evaluate properties without sending someone to physically inspect them. Through partnerships with geospatial imagery providers, Cape obtains satellite imagery, then applies in-house algorithms to extract structured data, such as whether a property has solar panels and the condition of the roof, and turns it into a structured database of property information.
Kottenstedt claims that nearly half of the major property insurers, as well as some of the world’s leading banks, use CAPE to guide their pricing and underwriting strategies.
Cape raised $75 million in venture capital from investors including Formation 8, Pivot Investment Partners and State Farm Ventures before its exit, and the company is cash flow positive and profitable, according to Kutenstedt.
Kottenstate he said in a blog post He believes Moody’s, in combination with CAPE, can deliver a “much deeper set” of solutions to carrier underwriting workflows and “enable a more complete view” of risk. Moody’s clients can expect more in-depth, property-specific data, including building characteristics, average annual loss estimates, appraisals and more, Kottenstedt added.
“Moody’s access to broader and more diverse information gives us the ability to broaden and deepen CAPE solutions while incorporating additional, orthogonal, risk-relevant input data,” Kottenstedt wrote. “Moody’s global scale can accelerate our expansion into international markets, [and its] A footprint with financial stakeholders outside of underwriters may accelerate the adoption of CAPE’s offerings within the mortgage ecosystem and those of other financial stakeholders.
CAPE is Moody’s first acquisition of 2025, and its 23rd to date. According to To fund the Tracxn database. CAPE adds to Moody’s other property insurance-related mergers and acquisitions, including Predict, a casualty insurance analytics provider, and RMS, a climate and natural disaster risk modeling company.
