Western Skies uses Gradient AI for stop-loss insurance gains

Managing general underwriter (MGU) Western Skies leverages insurtech Gradient AI to grow its SME stop-loss insurance market share

Western Skies, the managing general underwriter (MGU) has partnered with Gradient AI for its SAIL solution, as it bids to provide stop-loss insurance access to small, self-funded entities.

Leveraging AI to access new markets

The MGU says it is leveraging Gradient AI’s SAIL solution to access new markets, offering affordable insurance plans to small and medium businesses (SMEs). 

Western Skies attributes its selection of Gradient AI to the advanced AI and analytics capabilities it offers, particularly regarding data from the medical, lab and prescription industries. The MGU adds it will be accessing a niche in the market by offering self-funded insurance plans to SMEs, which are typically declined stop-loss policies due to a lack of small business claims data making risk assessment difficult to complete. 

Including itself as an insurer that underserves SMEs, Western Skies notes it has traditionally served brokers, agents and third-party administrators, but not the 89% of US businesses which operate with less than 150 employees.

Gradient AI’s SAIL solution, will, according to the MGU, allow it to broach the vast SME market to partner with businesses with as few as 25 employees. 

New opportunities

With Gradient AI’s SAIL solution onboard, Western Skies says it can “exponentially grow its prospective customer pool as well as its partnership potential with brokers, agents, and TPAs that work with smaller organisations.”

David Kesler, Vice President of Underwriting for Western Skies, notes: “Gradient AI’s technology is revolutionary and on the leading edge of the industry. It has enabled us to innovate and deliver new insurance solutions to the market. With Gradient AI, we can combine our strengths from our traditional business with SAIL’s predictive analytics to reach new markets that were previously unattainable. This has been a game changer for Western Skies.” 

Gradient AI CEO and Founder Stan Smith adds: “We’re excited to partner with Western Skies, offering innovative new insurance opportunities to the small business market. “With this stop-loss insurance partnership, everybody wins. Employers and employees can obtain insurance at more competitive rates, and Western Skies and their partnering brokers, agents, and TPAs can now serve a new market segment.”

Additional benefits

As well as providing access to SME businesses, the MGU says SAIL has allowed it to evolve its traditional medical underwriting through statistical probabilities, improving accuracy in assessing risk and pricing policies.

The MGU’s move to leverage SAIL also allows it to expand outside of the US Southeast, moving west and northwest with the AI platform provided by Gradient AI.

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