The firm’s software is already in use by QBE, AXA, MS Amlin and Starr
Artificial intelligence company Cytora has announced fresh funding of £25m led by EQT Ventures as it bids to transform commercial insurance underwriting using artificial intelligence (AI).
It will be used to accelerate the expansion of Cytora’s product suite and its scaling into new regions.
Other funds come from existing backers – Cambridge Innovation Capital, Parkwalk and a number of angel investors.
Richard Hartley, co-founder and chief executive at Cytora, said: “With this investment, we’re looking forward to widening our impact and helping accelerate the insurance industry’s digital transformation.
“Today, we’re enabling insurers to underwrite at a fraction of the cost of traditional methods and price policies more accurately. Over the next 24 months, we’re going to scale across the insurance value chain and move into new geographies.
“The EQT Ventures team brings unrivalled expertise and they’ve supported the growth of some of Europe’s leading businesses. We’re looking forward to partnering with them on the exciting journey ahead.”
Cytora felt EQT was the right partner as it understands how to scale businesses.
Lyle Fong, partner and investment advisor at EQT Ventures, added: “We’re seeing a radical transformation in insurance, with organisations expecting the same level of simplicity, transparency and convenience from their business insurers as they’re getting from consumer insurers and digital banks.
“Changing core underwriting processes that have been set for decades is hard, but of all the founders I’ve met, Richard and [co-founder Aeneas Wiener] have the ambition, grit, and drive to do it.”
Cytora applies AI to public and propriety data including construction features, financial and weather data to better predict risk.
Its software is already in use by QBE, AXA, MS Amlin and Starr and insurers have built new end-to-end quotation applications on top of Cytora’s APIs. This enables business owners to buy policies online in less than a minute – using only a business name and postcode to get a quote.
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