Moody’s has announced an agreement to acquire Cape Analytics, a geospatial AI startup, for an undisclosed sum. The deal, expected to close in Q1 2025, will provide Moody’s with Cape’s AI-driven geospatial analytics technology, enhancing insurance underwriting. Moody’s plans to leverage the technology to create a property database offering address-specific risk insights for its insurance clients.
Cape Analytics, founded in 2014 by Suat Gedikli and Ryan Kottenstette, uses satellite images and in-house algorithms to generate structured property data, such as roof conditions and solar panel installations. This data helps insurers with pricing and underwriting strategies. Nearly half of the top property insurers and major banks are already using Cape’s technology.
The acquisition aligns with the growing adoption of AI in the insurance industry, with a 2024 survey by Conning indicating that 77% of insurers are incorporating AI. AI’s promise of faster claims processing and increased efficiency has led many insurers to embrace the technology despite concerns about potential biases.
Cape’s technology will allow Moody’s to offer more comprehensive property-specific data to its clients, such as building characteristics, loss estimates, and valuations. The acquisition will also enhance Moody’s ability to provide a broader range of risk-relevant data, potentially expanding Cape’s solutions into international markets and the mortgage ecosystem.
Cape, which raised $75 million in venture capital, is cash-flow positive and profitable. The acquisition is Moody’s first in 2025 and its 23rd acquisition overall. It complements previous acquisitions in the property insurance space, such as Praedicat and RMS, strengthening Moody’s position in insurance analytics and risk modeling.