Financial services firm Moody's announced. It was reported that the purchase was agreed to on Monday. Cape AnalyticsA geospatial AI startup for an undisclosed amount.
The deal, which is expected to close in Q1 subject to customary closing conditions, will allow Moody's to use Cape's geospatial AI analytics technology for underwriting. With the technology, Moody's plans to create a real estate database with “address-specific” risk insights for its insurance clients, Moody's CEO Rob Fauber said.
“By combining our … risk models with Cape's AI-powered property risk intelligence, we will provide our clients with the most advanced property risk analytics available in the industry,” Fauber said in a statement, “enhancing insight and decision-making across insurance. Life.”
Cape's exit comes as the insurance industry embraces its AI and predictive analytics technologies. A 2024 Survey Insurance asset manager Conning found that 77% of insurers are in the process of deploying AI, a 16 percent increase over the previous year. One by one EstimatesThe global AI in insurance market will be worth $79.86 billion by 2032.
Suat Gedikli and Ryan Kottenstette founded Mountain View in Cape, California in 2014. Kottenstette was previously a senior engineer at BMW, then principal at Khosla, and Gedikli was a research engineer at the robotics incubator Willow Garage.
Cape helps insurance carriers optimize their underwriting process by helping them use AI and geospatial imagery to evaluate assets without having to send someone to physically inspect them. Through partnerships with geospatial imagery providers, Cape takes satellite imagery and then uses in-house algorithms to extract structural data, such as whether a property has solar panels and roof condition, and turns it into a structured property information database.
Kottenstette claims that nearly half of the top real estate insurers and some of the world's top banks use Cape to inform their pricing and underwriting strategies.
Cape is Formation 8; Having raised $75 million in investment from investors including Pivot Investment Partners and State Farm Ventures, the company is cash flow positive and profitable, Kottenstette said.
Kottenstette said he believes Moody's combined with Cape can bring “deeper solutions” to service providers' underwriting workflows. Moody's clients are building characteristics; Estimated average annual loss; including valuations and more; Added by Kottenstette.
“Moody's access to broader, more diverse data allows us to further deepen Cape solutions by including additional, homogeneous, and risk-relevant input data,” Kottenstette said. Blog post. “Moody's global scale can accelerate our expansion into international markets, and (its) track record with financial stakeholders beyond insurance providers can accelerate the adoption of Cape's offerings within the lending ecosystem and by other financial stakeholders.”
Cape is Moody's first acquisition in 2025 and its 23rd acquisition to date. according to To support the Tracxn database. Among Moody's other property-insurance mergers and acquisitions, Cape included non-casualty insurance analytics provider Praedicat and RMS; Other property-insurance mergers and acquisitions have been added, including a weather and natural disaster risk modeling firm.