Cytora, a digital risk processing platform, has entered into a partnership with ChAI, an AI-powered raw material market intelligence and commodity pricing forecaster, in a move that is anticipated to help insurers navigate market volatility.
According to the announcement, the partnership will reportedly enable insurers to use ChAI’s commodity price forecasts and market knowledge for a variety of commodities across metals, energies, plastics and agricultural on Cytora’s platform.
As a result, this will deliver insights into commodity price fluctuations and their implications on insurance risks, as well as providing users with access to commodity price forecasts up to a year ahead.
This partnership between the two firms comes during a time where volatility in raw material prices continues to pose major challenges to insurers as well as the wider economy.
Therefore, the integration of ChAI’s forecasting capabilities with Cytora’s risk assessment platform will empower insurers to make more informed decisions quickly.
From what we understand, this will also enable greater resilience within insurance firms, equipping them better to navigate more frequent and pronounced market disturbances that are caused by major events such as natural disasters, geopolitical disruptions and other global crises.
A key factor to highlight, this partnership between the two firms is also expected to support greater resilience within organisations producing the raw materials.
It is anticipated that this will result in more insurance solutions being made available for smaller companies that are currently underserved by existing risk management solutions.
Juan de Castro, COO at Cytora, commented: “The volatility of today’s markets underscores the need for the best data and analytics to enable better, faster and more seamless insurance decisions. We are committed to delivering these critical insights for our customers.”
Adding: “The Cytora platform will now offer the most expansive spectrum of data on raw materials and commodities, enhancing insurers’ ability to manage risk with unmatched precision and foresight. We are delighted to be working with a company that shares our commitment to continuous innovation, and look forward to the transformative impact this collaboration will have on the industry.”
Tristan Fletcher, CEO and co-founder of ChAI, said: “Our collaboration with Cytora represents a significant step forward in applying AI to solve complex problems in the insurance industry. Together, we will enable insurers to navigate the uncertainties of the global commodities markets with greater confidence and precision.”
