Managing general underwriter (MGU) Western Skies has deployed Gradient AI’s SAIL solution to provide smaller and self-funded groups with stop-loss insurance coverage.

Using SAIL, Western Skies has been able to explore new markets and help small and midsize businesses with access to insurance plans at reduced costs.  

SAIL features improved artificial intelligence (AI) and analytics capabilities that use medical, lab, and prescription data.

Its data and predictive analytics will help Western Skies to expand its presence in the small business market of 25, 50, and 100 lives.

Western Skies will also be able to forge new alliances with brokers, agents, and third-party administrators (TPAs) that work with smaller firms.

The company can tap new areas beyond its traditional medical underwriting and explore the potential of financial underwriting, thereby offering improved accuracy in risk and pricing policy evaluation.

Small and midsize businesses have been looking for affordable, self-funded insurance plans for a long time, according to Gradient AI.

But the scarcity of small business claims data required by underwriters to evaluate group risk has led stop-loss insurers to exclude small business clients most of the time.

Western Skies underwriting vice-president Dave Kesler said: “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.”

The latest development comes shortly after Roundstone Insurance selected Gradient AI’s SAIL solution to enhance its risk assessment and underwriting procedure.