- New global survey from Economist Intelligence Unit(EIU) and Willis Towers Watson highlights majority of executives around the world feel their organisations can do better when it comes to learning from their past cyber mistakes
- Chubb launches special new environmental risks report-"Global Management of Environmental Risk"
- ICISA members say demand for trade credit insurance and surety developing favourably
- IPCC opens review of 2019 Refinement to National Greenhouse Gas Inventories
- Two new committee chairs at LIIBA-involved in modernisation of London Market
- LV= in trial agreement with Optal to streamline claims payments
- MS Amlin and Cytora in new partnership to deploy artificial intelligence into commercial underwriting processes expired
- Willis Towers Watson introduces new version of ResQ, its loss reserving software expired
- Florida-based SUNZ Insurance goes live with Sapiens CompSuite Policy solution expired
- SSP to integrate Northdoor Sanctions Checker solution to assist its broker client base expired
- MAPFRE announces senior appointments expired
- Gallagher announces Matson to replace Chilton as CEO, UK Brokerage and Underwriting Division later in the year expired
11th October 2017
Guidewire moves for Cyence
Guidewire Software has announced that the company have entered into a definitive agreement for Guidewire to acquire Cyence. Cyence is a software company that applies data science and risk analytics to enable P&C insurers to grow by underwriting "21st century risks" that have gone underinsured or uninsured.
These emerging risks—including cyber, reputation, and new forms of business interruption risk—pose unique challenges for insurers. Evolving rapidly, they typically lack extensive claims history to inform insurers’ underwriting and pricing determinations. Their complexity and non- obvious patterns of risk linkage and risk accumulation require more diverse and dynamic data sets to be modelled effectively. To meet this challenge, Cyence offers a data listening and risk analytics solution combining Internet-scale collection and curation of external data with sophisticated machine learning and risk modelling, which supports insurers’ product management, actuarial, underwriting, and enterprise risk management functions.
"Cyence is an exceptional technology company that, like Guidewire, focuses on serving the strategic needs of the P&C industry," said Marcus Ryu, co-founder and ceo, Guidewire Software. "While Guidewire has focused on core operations, data management, and digital engagement, Cyence applies expertise in data science and machine learning to the modelling needs of insurance product design, pricing, and underwriting for 21st century risks. As traditional actuarial approaches struggle to address the unique characteristics of emerging risks like cyber, Cyence’s next-generation approach will enable insurers to broaden the scope and value of the products their policyholders need."
"Cyence started applying our data science engine to cyber risk given the significant demand from the insurance industry on what is an existential threat for their insureds. We look forward to joining Guidewire and continuing our mission to enable insurers to enter new markets by insuring emerging risks like cyber," said, Arvind Parthasarathi, co-founder and ceo, Cyence. "We are excited by the opportunity to power our approach with operational data and policy lifecycle support from Guidewire’s core systems and to join forces with the technology leader serving the P&C insurance industry."
Total consideration for the acquisition is approximately $275m, or $265m net of $10 million cash on hand, subject to customary transaction adjustments. Consideration provided at closing will consist of net cash of approximately $140m and approximately 1.6 million shares of newly issued Guidewire common stock. Of those shares, approximately 260,000 are in the form of deferred equity consideration, which are subject to the achievement of certain retention and operating milestones.
The transaction is expected to close early in Guidewire’s second fiscal quarter.
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