GLOSSARY - INSURANCE
What is Underwriting Automation?
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Quick Answer
Underwriting Automation uses AI to evaluate insurance applications, assess risk, and make policy decisions with minimal human intervention. It analyzes applicant data, evaluates risk factors, applies underwriting guidelines, and determines pricing and coverage—accelerating decisions while maintaining accuracy and compliance.
Definition
**Underwriting Automation** transforms underwriting from a time-intensive manual process to an intelligent, scalable operation. AI systems evaluate risk using the same criteria as expert underwriters, but process applications in minutes rather than days or weeks.
Key Points
- Evaluates applications against underwriting guidelines automatically
- Assesses risk factors using historical data and patterns
- Determines appropriate pricing and coverage levels
- Flags complex cases for human underwriter review
- Maintains consistency across underwriting decisions
- Reduces turnaround time by 70-80%