AI Underwriting in 2025: What You Need to Know Today

AI underwriting is the use of artificial intelligence to help decide if someone should get insurance and at what price.

Instead of just using human judgment or simple rules, AI underwriting uses computers to look at lots of information quickly. This helps insurance companies make smarter choices, faster. It fits into a bigger trend of technology improving how insurance works, from selling policies to processing claims.

AI underwriting looks at data like past claims, health records, or even behavior patterns to estimate risk. It can spot details people might miss and update decisions as new information comes in. For example, if someone's driving habits change, the AI can adjust their car insurance premium automatically.

Here's what makes it useful:

• Speeds up approvals so customers don't wait long

• Reduces mistakes by checking more data than a person can

• Keeps prices fair by accurately judging risk

• Scales easily when many applications come in at once

Under the hood, AI underwriting often combines machine learning models with natural language processing. These tools allow it to read documents, analyze patterns, and weigh risks systematically. It can even use Strada's conversational AI integration to automate workflows and talk directly with customers, making the whole insurance process smoother and more accurate.

Common ways companies use AI underwriting include:

1. Automating health insurance approvals by reading medical records

2. Adjusting home insurance premiums based on local weather data

3. Speeding up life insurance decisions by analyzing financial history

AI underwriting is changing insurance step by step, helping companies provide better service and fairer prices through smart technology.