Cytora, a developer of artificial intelligence-based products and services for the commercial insurance industry, has raised $32.5 million in new financing.
The London-based startup said it will use the cash infusion to accelerate expansion of its product offerings and grow internationally.
EQT Ventures led the Series B funding round. Existing investors Cambridge Innovation Capital, Parkwalk and a number of angel investors are among others who contributed to the new financing. Previous investors include QBE Ventures and Starr Global Holding.
Cytora was founded and spun out of the University of Cambridge in 2014 by a team of machine learning scientists, data engineers and strategists. The founding team recognized that applying for commercial insurance is an arduous process that can take weeks because of the use of nontransparent pricing and outdated models, Cytora said in its funding announcement.
Cytora applies AI to public and proprietary data, including property construction features, company financials and local weather – combined with an insurance company’s internal data – to better predict risk and ensure more transparent pricing.
Cytora said its software is being used by some of the world’s largest insurers, including QBE, AXA XL, MS Amlin and Starr. In addition, insurers have built new end-to-end quotation applications on top of Cytora’s API (application programming interface). By doing so, business owners can buy policies online in less than a minute, requiring only a business name and postcode to issue a quote. The company said.
*A version of this story ran previously in our sister publication Insurance Journal.