AI Transforming Insurance Underwriting But Standalone Policies Still a Challenge

What Happened

Insurance Business America reports that artificial intelligence continues to reshape the underwriting landscape in the insurance sector. Carriers are increasingly using AI-powered tools to process large volumes of data, identify risks, and accelerate decision-making for both commercial and personal lines. Despite these advancements, the industry consensus holds that technology is not yet sophisticated enough to independently support standalone AI-driven insurance policies. Underwriting still relies on a blend of human experience and automation, with full autonomy remaining a future goal rather than present reality.

Why It Matters

The cautious adoption of AI in underwriting highlights both the progress and limits of automation in highly regulated sectors like insurance. As AI capabilities mature, insurers could realize greater speed, accuracy, and innovation in policy creation and risk management. Read more in our AI News Hub