Insurtech Gradient AI secures $6m Series A funding from MassMutual, Forte and Sandbox

Gradient AI, an artificial intelligence solutions provider in the insurance technology space, has raised $6 million in a Series A financing led by Forte Ventures and Sandbox Insurtech Ventures. The round also includes participation from Gradient’s existing investor MassMutual Ventures.

The company will use the proceeds to drive further growth of its artificial intelligence and machine learning solutions.

Gradient’s artificial intelligence platform intends to help commercial insurers automate and improve underwriting results, reduce claim costs, and improve operational efficiencies. Its analytics suite is designed to address the needs of insurance carriers, managing general agents (MGAs), professional employer organisations (PEOs), third party administrators (TPAs), insurance pools and other insurance professionals with a broad suite of claims and underwriting solutions.

“The Gradient platform helps our customers’ claims and underwriting teams make better decisions more efficiently, which allows our customers to write more profitable business, minimise claims, and improve the profitability of their book,” said Gradient’s CEO Stan Smith.

Tom Hawkins, founder and managing partner at Forte Ventures, said: “Gradient will play a critical role in progressing the widespread adoption of ML-based analytics platforms across commercial insurance over the next several years. We’re excited to be supporting the Gradient team as it catalyses change in an industry that, at the end of the day, impacts the health and financial outcomes of millions of Americans.”

Eric Emmons, managing director at MassMutual Ventures, said: “We are thrilled to have such a strong syndicate working with Gradient to accelerate the adoption of algorithmic claims management and underwriting across insurance verticals.”

Chris Zock, managing director of Sandbox Insurtech Ventures, commented: “It is clear at this point that carriers, risk pools, TPAs, and PEOs that aren’t implementing artificial intelligence in their claims and underwriting processes will significantly underperform relative to their peers.”

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