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Moody's to Acquire CAPE Analytics for Enhanced Risk Analytics

Risk Analytics

Business Honor
15 January, 2025

Moody's Corporation to acquire CAPE Analytics, enhancing property risk analytics with geospatial AI technology.

Moody's Corporation announced that it had agreed to acquire CAPE Analytics, an emerging leader in geospatial AI intelligence for residential and commercial properties. The acquisition continues the company's march toward creating an even richer, more analytical set of data products that can address more complex analytics for the industry. Through integrating Moody's advanced CAT risk modeling with CAPE's advanced geospatial AI-powered property risk intelligence, the two companies seek to deliver the most developed property risk analytics in the industry.

The acquisition would integrate CAPE's firm-level and firmographic-specific data related to building-specific characteristics and firm data along with peril risk plus average annual loss estimates into Moody's established risk modeling platform. The outcome will be a highly extended property database that can provide risk insights specific to an address-an extremely valuable function for insurance carriers, reinsurers, and financial stakeholders. Clients will be provided with the most accurate possible analyses of property exposure, vulnerability, valuation, and hazards from natural dangers such as wildfires, hurricanes, or hailstorms, among others.

CAPE Analytics uses computer vision, machine learning, and geospatial imagery to provide granular risk assessments on an individual address basis. This means that customers can conduct fast and deep evaluations of property risks in the United States, large parts of Canada, and Australia. The addition of this information to Moody's Intelligent Risk Platform will provide decision support from underwriting through to claims management.

Rob Fauber, President and CEO of Moody's, highlighted the growing need for more accurate and actionable information in the face of evolving risks. The acquisition of CAPE is set to provide insurance and financial industries with enhanced tools to manage property risk, optimize their operations, and ensure that they remain agile in an increasingly complex risk landscape. The deal is expected to close in the first quarter of 2025.