Moody's agrees to acquire Cape Analytics, which develops geospatial AI for insurance providers
Financial services firm Moody's announced that it has agreed to acquire Cape Analytics, a geospatial AI startup, for an undisclosed sum.
The deal, which is expected to close in Q1, subject to customary closing conditions, will give Moody’s access to Cape’s geospatial AI analytics technology for insurance underwriting. With the tech, Moody’s plans to create a property database capable of delivering “address-specific” risk insights for its insurance clients, said Moody’s CEO Rob Fauber.
Cape’s exit comes as the insurance industry ramps up its adoption of AI and predictive analytics technologies. A 2024 survey by Conning, an insurance asset manager, found that 77% of insurers are in some stage of deploying AI, a 16-percentage-point increase from the previous year. By one estimate, the global AI in insurance market will be worth $79.86 billion by 2032.
Critics warn that AI technology could introduce biases and discriminatory decision-making into underwriting. Yet many insurers are forging ahead, spurred by AI’s promise to speed up claims processing and increase overall efficiency.