Applied Systems acquires Cytora to boost AI in insurance sector
Applied Systems has acquired Cytora in a move that aims to enhance AI-driven efficiencies across the insurance lifecycle.
The acquisition unites Applied Systems' portfolio of insurance solutions with Cytora's advanced AI-powered risk digitisation platform. The combined offering is designed to accelerate and streamline key insurance workflows, reducing both time and operational costs for stakeholders such as agencies, brokers, MGAs, carriers, and reinsurers.
Expanding AI across insurance
Applied Systems stated that the deal is aligned with its ambition to deliver what it describes as the Next Generation of the Digital Roundtrip of Insurance. The company intends to leverage Cytora's capabilities to boost automation, connectivity, and collaboration throughout each stage of the policy lifecycle.
"At Applied, we are committed to being the leading specialist in insurance AI solutions for both agencies and carriers," said Taylor Rhodes, Chief Executive Officer, Applied Systems.
"Cytora is the ultimate example of insurance-focused AI. Their commitment to leveraging advanced AI capabilities to accelerate and streamline the digitisation, exchange, and prioritisation of risk data between agents and carriers fits perfectly with our vision of the Digital Roundtrip of Insurance. Our collective technology assets, insurance domain expertise, and vast insurance data sets – combined with the power of AI – will deliver speed, accuracy, and cost advantages across all the critical workflows involved in the insurance lifecycle. This move firmly establishes Applied as the leader in insurance AI."
Cytora's platform is configurable and designed for carriers, MGAs, and brokers to digitise workflows from submission and claims servicing to renewals, endorsements, and mid-term adjustments. The platform uses AI to convert both structured and unstructured data - such as documents, spreadsheets, emails, and images - into transaction-ready information that meets the particular risk assessment needs of each participant.
Impact on insurance workflows
According to Applied Systems, the acquisition allows Cytora to increase its reach and offer its platform on a larger scale, targeting markets internationally and spanning multiple insurance workflows and lines of business.
The press statement notes that many insurance carriers already work with Cytora to improve the integration of their digital intake into existing business systems, including policy administration, rating engines, and workflow management tools. These partnerships have reportedly led to reductions in operational costs, a shrinkage in time to quote from weeks to hours, and a higher proportion of preferred risk quotations.
The intention, Applied Systems said, is to make these AI-enabled capabilities more widely available to agencies as well, with the goal of enhancing efficiency and enabling the industry to dedicate more resources to insuring risks rather than managing manual processes.
Cytora's perspective
"Cytora has focused on helping build a bigger, more impactful global insurance industry, enabling commercial insurers to accelerate the transition to digital risk flows so they can absorb higher volumes of risk, measurably increase written premium while reducing expenses and time to quote," said Richard Hartley, CEO and co-founder, Cytora.
"Our vision directly aligns with Applied's vision to connect and automate the Digital Roundtrip of Insurance, and we are excited to join Applied to significantly expand the value of insurance AI at each stage of the risk lifecycle, bringing the industry closer together and enabling more profitable growth for all stakeholders."
The transaction was advised exclusively by Insurance Advisory Partners for Cytora. Both companies have indicated that the integration of their platforms and expertise will bring material benefits to all entities involved in the commercial insurance process, from initial submission through to claims servicing and renewal.
