How is AI in Underwriting Poised to Transform the Insurance Industry?

We all know data runs the world. The question is, can you align insurance with data? Data has always been at the heart of insurance. Although the modern commercial insurance industry may have begun with premiums calculated over a cup of coffee, it has now embraced a long list of more sophisticated analytical techniques, ranging from statistics to generalized linear models. AI in underwriting is the new shiny object in town. Let's cover if there's any merit to the hype. AI/ML can help uncover new insights from previously underutilized data, including unstructured data like text, speech, and images. It allows for using additional data during underwriting that would otherwise be unavailable or very difficult to obtain. Throughout this article, we will understand the power of AI in insurance underwriting, the benefits of underwriting automation, the future of underwriting, and everything in between.