Applied Systems Acquires Cytora to Revolutionize Insurance with AI

Focus Keyword: Applied Systems Acquisition of Cytora

Applied Systems has made headlines with its strategic acquisition of Cytora, a cutting-edge digital risk processing platform tailored for the insurance industry. This initiative aims to enhance connectivity within the insurance ecosystem, an approach Applied terms the “Digital Roundtrip of Insurance.”

The Digital Roundtrip of Insurance

Taylor Rhodes, CEO of Applied Systems, emphasized the company’s dedication to leading the charge in insurance-focused AI solutions for both agencies and carriers. In his statement, Rhodes described Cytora as a prime example of AI innovation in insurance. “Their commitment to advanced AI capabilities aligns seamlessly with our objective of digitizing and prioritizing risk data circulation between agents and carriers,” he noted.

Bridging Workflow Inefficiencies

Cytora’s platform utilizes an AI-driven generative model designed specifically for commercial risk transfer workflows. Applied Systems President Graham Blackwell highlighted how Cytora greatly enhances the efficiency of new business submissions. Traditionally, the risk review process has been lengthy and cumbersome, requiring agents to send information to multiple insurers often resulting in a lack of responses.

“With our technology, we aim to eliminate the inefficiencies that agents and carriers face,” Blackwell explained. He pointed out that 30% to 50% of the time spent on submissions can result in no quotes being returned. This not only frustrates agents and clients but also hampers carriers from adequately underwriting the risks they seek.

Transforming Commercial Insurance

Richard Hartley, co-founder and CEO of Cytora, shared insights about the enormous potential for improving workflows in the commercial insurance sector. “Currently, 40% of a broker’s time is consumed by reading and interpreting submission data,” he explained. Hartley believes that by automating these processes with Cytora’s AI platform, underwriters can devote their expertise to making informed risk decisions.

AI-Powered Solutions

The platform employs large language models to digitize and streamline the submission process. Hartley noted, “This not only benefits brokers but also empowers insurance companies to increase the volume of risks they write.” The technology is adaptable and can manage the entire policy lifecycle—from submission to claims servicing—which enhances operational efficiency.

Enhanced Data Management

Cytora’s platform is adept at converting varying data types—from structured forms like ACORD to unstructured sources such as documents and emails—into actionable information. This capability allows both agents and carriers to transform their workflows fundamentally.

Blackwell remarked, “Imagine a scenario where no one is manually entering data or sending countless emails. This technology paves the way for a proactive and dynamic interaction among industry partners.”

Building Towards the Future

As Applied Systems and Cytora converge, both leaders are optimistic about the future of the insurance landscape. Hartley pointed out that their shared vision will enable improved interactions and a more productive environment for all stakeholders. “We see a future where AI technology significantly enhances each stage of the risk lifecycle, allowing for more profitable growth in the industry,” he shared.

Conclusion

The acquisition of Cytora by Applied Systems is set to reshape the future of the insurance industry. By integrating innovative AI solutions, both companies aim to enhance operational efficiency, unlock growth potentials, and create a seamless experience for all parties involved in the insurance process.

Insurance Advisory Partners LLC served as the exclusive financial advisor to Cytora in this transaction, although specific terms of the deal remain undisclosed.

Topics: Mergers & Acquisitions | InsurTech | Data Driven | Artificial Intelligence

This article highlights the significant pathways this acquisition opens for the insurance industry, emphasizing the crucial role of advanced technology in improving efficiency and communication in risk management processes.