A message from Michael Steel and Colin Holmes - General Managers, Insurance Solutions
 

Pushing the boundaries: A new approach to property risk assessment​

Recognizing the rapidly shifting risk landscape our customers face, the challenges, and the opportunities that arise from it, Moody's is on a strategic mission to redefine property risk management. Today marks another important strategic milestone for our team at Moody's, our customers, and the wider insurance industry.

We are excited to announce that we have signed an agreement to acquire CAPE Analytics, a pioneer in AI-powered property risk intelligence.  

With losses from weather hazards increasing in frequency and severity, we see the insurance industry standing at a crossroads. Traditional risk assessment and management methods are being challenged, requiring innovative solutions that offer more precise, actionable insights.​

To move further on our core mission and help customers make better, faster decisions amid uncertainty, our decision to acquire CAPE® recognizes the transformative power of geospatial artificial intelligence (AI) around understanding property risk.​ 

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. Recognizing the significant synergy between Moody's catastrophe risk modeling experience and CAPE's geospatial AI analytics, introduces a new era of property loss estimates. 

Integrating CAPE’s comprehensive property information database, including building specifics, peril risk assessments, and geospatial AI analytics through the Intelligent Risk Platform™ aims to raise the bar on property intelligence for our customers and enhance their key property underwriting and risk management workflows. ​​We believe this transformative step positions us at the forefront of innovation in property risk management.  

The impact of this acquisition will extend beyond our insurance customers. We envisage it opening significant opportunities for banks, commercial real estate companies, and asset managers, all sectors that value robust property risk insights. Working with CAPE’s technology can help drive innovation and value creation for these industries.​

Moody’s identified an urgent need for the insurance industry and related sectors to respond to exponential risk, and the timing of this acquisition accelerates us toward our mission of providing customers with the enhanced view of property risk and loss they need to leverage insights quickly and transform uncertainty into opportunity.​ 

Our focus now is on integrating CAPE's capabilities into Moody’s solutions. As our insurance customers have seen, the acquisition of CAPE, earlier acquisitions of RMS and, more recently, Praedicat – is a testament to Moody’s dedication to innovation, leadership, and excellence in the insurance industry, to solve the risk management challenges ahead. 

It marks the beginning of an exciting new chapter in our journey, that aims to bring better value to our customers and the industry. Working together, we hope to redefine property risk management.​

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