Boston-headquartered Gradient AI, an enterprise software provider of AI solutions in the insurance industry, has scooped $56 million in Series C funding. The round was led by Centana Growth Partners, with participation from existing investors MassMutual Ventures (which backed Zluri and Scrut Automation), Sandbox Insurtech Ventures and Forte Ventures.
How will it use the investment?
The investment will be used for product development, adding new features and functionality, and launching new products to expand its range of solutions for P&C (property and casualty) and health insurers. It will also continue driving innovation and efficiency in the insurance industry and further bolster customer success and sales functions.
“Gradient AI has an experienced executive team and products that produce demonstrable ROI for its customers which, together, have helped Gradient deliver strong financial results,” said Matt Alfieri, Partner at Centana Growth Partners. “The company is at an important inflection point, and we are excited to partner with Stan and his stellar team. In addition to growth capital, we look forward to providing our knowledge and industry connectivity to assist Gradient in product expansion and go-to-market activities that continue to benefit customers and extend their competitive advantage.”
What does the company do?
According to a recent report, AI could deliver up to $1.1 trillion of annual value in the insurance industry. Founded by Stan Smith, Gradient AI is positioned to be at the forefront of delivering solutions to unlock that value.
The company aims to increase precision and automation throughout the insurance industry. Its solutions improve loss ratios and profitability by predicting underwriting and claim risks with greater accuracy and reducing quote turnaround times and claim expenses through intelligent automation.
Unlike other solutions that use a limited claims and underwriting dataset, Gradient AI’s SaaS platform leverages a vast industry data lake comprising tens of millions of policies and claims. It also incorporates numerous other features including economic, health, geographic, and demographic information. As a result, insurers can better assess risks and increase operational efficiencies to improve profitability.
Customers include some of the most recognized insurance carriers, MGAs, MGUs, TPAs, risk pools, PEOs, and large self-insured employers across all major lines of insurance.
“While we are gratified to secure this significant investment from both Centana and our existing investors, this is just the first step,” said Stan Smith, CEO of Gradient AI. “Now it’s up to us to use this funding wisely, enhancing our platform and delivering unparalleled value to our customers. Insurers are becoming increasingly sophisticated in their risk assessment and are focused on improving their operational efficiencies. We are helping them achieve these goals by automating processes, reducing costs, and significantly improving results.”
What do we think about Gradient AI?
Poised to transform the insurance industry with its advanced AI solutions, Gradient AI aims to enhance precision and automation in underwriting and claims processes. With its vast industry data lake and intelligent automation, the company improves loss ratios and operational efficiencies for insurers.
As the demand for sophisticated risk assessment grows, Gradient AI’s innovative platform is set to drive substantial value and profitability, positioning it as a leader in the sector.
