Moody's & Cytora: Climate Risk Insurance Technology
Cytora, a pioneering digital risk processing platform, has forged an integration partnership with Moody's RMS, a leading firm in catastrophe risk modelling to refine insurance underwriters' proficiency in interrogating climate and natural disaster risks.
This partnership introduces Moody's RMS Location Intelligence API into Cytora's robust risk processing framework.
The API harbours catastrophe peril data, which spans more than 100 countries, into the heart of the risk assessment processes for broader property and casualty (P&C) insurance realms.
Michael Richitelli, Managing Director of Global Insurance Sales at Moody's, says: "The changing catastrophe risk landscape means it's more important than ever for insurers to accurately assess the impact of catastrophe risk as part of the risk selection and pricing process.
"By leveraging the same rich science that underpins our probabilistic models, Location Intelligence ensures that quality analytics are being used early in the underwriting process."
Enhancing insurance market resilience
There is a pressing need for increased efficiency in the insurance market, underscored by the fact that insurance claims from natural catastrophes have exceeded US$100bn annually for the past four years.
The integration offered by Cytora and Moody's RMS equips insurers to weave climate risk data seamlessly into their underwriting decisions, potentially mitigating vast fiscal exposures to climate-related disasters.
Cytora enhances this process by transforming incoming insurance risks into digitised formats, enriching them with external data and then channelling them through streamlined automated or semi-manual underwriting systems.
The addition of Moody's RMS catastrophe modelling capabilities stands to significantly bolster this already dynamic process.
The synergy between Moody's catastrophe risk data and Cytora's platform doesn’t just elevate existing insurance workflows from submission to quote generation — it revolutionises them.
Cytora has previously expanded its ecosystem with a series of strategic choices; notably, its recent cooperation with global insurer Chubb and the integration of Large Language Models (LLMs) alongside its proprietary artificial intelligence solutions within its platform.
Richard Hartley, CEO and Co-founder of Cytora, says: “Natural and manmade catastrophes, influenced by a changing climate, are bringing a huge range of difficult challenges to the insurance industry that are only going to grow"
Towards a smarter underwriting future
Established in 2014 by visionaries Richard Hartley and Aeneas Wiener out of research ventures at the University of Cambridge, Cytora has been at the forefront of utilising artificial intelligence and machine learning to revolutionise commercial insurance underwriting processes.
By 2017, the company had secured £4.4m (US$5.5m) in funding from heavyweights including Cambridge Innovation Capital, followed by a robust Series A funding round in 2019 which raised a substantial £25m (US$31.4m) led by EQT Ventures, with contributions from Parkwalk among others.
Cytora’s product suite effectively processes diverse data sources to furnish insurers with granular risk insights.
Its portfolio showcases successful partnerships with major insurers including QBE and Convex Group, highlighting the firm's pivotal role in the transformative landscape of digital insurance underwriting.
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