Insurance software provider Gradient AI has announced a collaboration with ATS Underwriting, a managing general underwriter focused on medical stop-loss insurance. The partnership aims to improve underwriting processes within the small group transitional market, catering to smaller companies transitioning from fully insured to self-funded plans.
After initially using a competitive AI solution, ATS switched to Gradient AI's SAIL solution due to its high-quality medical industry data lake, Gradient AI said.
According to Andrew Trupiano, president of ATS Underwriting, the collaboration with Gradient AI allows ATS to leverage opportunities in the stop-loss space and establish a stronger presence.
“By leveraging AI-based underwriting together with traditional underwriting, we’re taking a hybrid approach to qualify groups, price risk more accurately, and better serve our clients,” Trupiano said.
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Traditionally, underwriting for small groups involves the use of individual health questionnaires (IHQs), which can be burdensome and administratively complex. However, with Gradient AI's SAIL solution, IHQs are no longer necessary to predict health plan risk. This removes a significant barrier for smaller groups seeking self-funded options, granting them access to cost savings, flexibility, and benefits typically reserved for larger groups, the company said.
“Even when the data is lacking, leveraging AI-based underwriting together with traditional underwriting allows us to quote more groups.,” Trupiano said. This enables ATS to serve a wider range of clients and seize opportunities in the small group transitional market.
“Innovative leaders like ATS have embraced AI-powered analytics and underwriting to better meet the needs of this large and growing segment,” said Stan Smith, founder and CEO of Gradient AI.
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