Digital Underwriting in Insurance: What You Need in 2025

Digital underwriting is the process of using technology to evaluate insurance risks instead of relying on manual work.

In simple terms, digital underwriting means computers and software gather and analyze data to decide if an insurance policy should be approved, and at what price. This process used to be slow, with lots of paperwork and human review. Now, it is faster and more accurate because technology handles many tasks automatically. This helps insurance companies save time and provide better service to customers.

Here is how digital underwriting generally works:

• Data collection from multiple sources like medical records, driving history, and financial information

• Automated risk assessment using algorithms

• Review and decision making, sometimes with human input for complex cases

At a deeper level, digital underwriting integrates advanced tools such as machine learning models and artificial intelligence. These tools spot patterns and predict risks more precisely than traditional methods. One key benefit is the use of real-time data to update risk profiles quickly. This is helpful when new information comes in after the insurance application is submitted.

Some insurance companies use voice AI, like Strada's phone agents, which listen and answer to customer calls and extract important details. This information feeds into digital underwriting systems instantly, speeding up decisions while reducing errors.

Automated workflows triggered by call insights improve both accuracy and efficiency, making the whole underwriting process smarter and more responsive.

For example, if a customer calls with new health information, Strada's AI can pick this up and update the risk assessment right away. This avoids waiting days for manual input and helps the insurer offer fair premiums faster.