Know What's Happening in AI

The AI Route to Improved Underwriting

A new report highlights how artificial intelligence is reshaping underwriting across finance and insurance. AI-driven models ingest alternative data—such as transaction streams, social signals, and IoT metrics—to augment or replace traditional credit scores. Early adopters report faster risk assessments, lower default rates, and a 20‑30% drop in manual errors. The shift also raises regulatory focus on model transparency and bias mitigation.