Gradient AI enhances workers’ compensation risk scoring solution

April 17, 2025

The upgraded solution offers improvements in risk scoring accuracy, regulatory compliance, and implementation speed, providing a more effective and fairer model for insurers.

Gradient AI, a US-based provider of AI-powered insurance software, has unveiled an enhanced version of its Workers’ Compensation Underwriting Risk Score Solution.

The upgraded solution offers improvements in risk scoring accuracy, regulatory compliance, and implementation speed, providing a more effective and fairer model for insurers.

The advanced AI model, trained on a national dataset comprising tens of billions of dollars in workers’ compensation premiums, enhances risk segmentation.

It allows insurers to price policies more precisely and avoid unprofitable risks.

Also, it aligns with the evolving regulatory standards, incorporating guidance from the National Association of Insurance Commissioners and various state AI circulars.

The new solution significantly reduces implementation times from months to days, eliminating the need for client data during initial setup.

According to early adopters, the solution resulted in a five-point improvement in loss ratios, 80% faster quote turnaround times, and an 86% increase in bound premium.

Unlike traditional models, Gradient AI’s solution integrates job-specific risk scoring, claims data from over 200 carriers and MGAs, and a regulatory-compliant model.

The features offer a market advantage, as they are not present in legacy approaches.

The company is currently offering an enhanced Workers’ Compensation Underwriting Risk Score solution to insurers.

Gradient AI founder and CEO Stan Smith said: “With this release, we’re empowering insurers to underwrite smarter, grow faster, and stay ahead of regulatory scrutiny.

“Our regulatory compliant model and improved accuracy gives carriers the tools they need to make data-driven decisions and grow profitably, while being prepared for future AI regulations.”

In July last year, Gradient AI secured $56.1m in a Series C funding round led by Centana Growth Partners, with participation from existing investors Sandbox Insurtech Ventures, MassMutual Ventures, and Forte Ventures.

The funding aims to support product development, drive innovation, and enhance customer success and sales functions in the insurance industry.