• AI is revolutionizing insurance underwriting by reducing processing time and increasing accuracy.
• Risk digitization allows AI to analyze large datasets and streamline underwriting decisions.
• Allianz and AWS have launched AI-based platforms to enhance efficiency in risk assessment.
• AI has cut standard policy decision times from 3–5 days to just 12.4 minutes with 99.3% accuracy.

Artificial intelligence is revolutionizing the insurance industry, particularly underwriting, by significantly reducing decision times and improving accuracy.

Companies like Allianz and Amazon Web Services are leveraging AI to digitize risk assessment, allowing underwriters to make quicker and more precise policy determinations.

While AI enhances efficiency, concerns over bias and ethical considerations remain, prompting insurers to refine their models to ensure fairness in assessments.

Insurance underwriters have long struggled with the time-consuming process of analyzing massive documents before making policy decisions. Traditionally, this could take days or even weeks, delaying approvals and increasing inefficiencies.

However, AI is rapidly changing the landscape by transforming risk assessment into a faster and more precise process.

According to a 2025 technical analysis, AI-driven underwriting has slashed decision times from an average of three to five days to just 12.4 minutes for standard policies, all while maintaining a 99.3% accuracy rate. 

Even for more complex policies, AI has helped reduce processing times by 31% and enhanced risk assessment accuracy by 43%.

One of the most significant advantages AI brings to underwriting is ‘risk digitization’. This process allows AI to extract, categorize, and evaluate information from various data sources, making it easier for underwriters to assess risk efficiently. 

Google Cloud experts have emphasized how this technology allows insurers to streamline their decision-making processes, leading to faster and more consistent underwriting.

Sam Lewis, vice president of product for Cytora, explains that AI-driven platforms help underwriters receive ‘decision-ready risks’, ultimately improving workflows and efficiency.

Leading insurance firms, including Allianz, have already embraced AI-powered underwriting solutions. The company's BRIAN system utilizes generative AI to guide underwriters in assessing policy applications. Similarly, Amazon Web Services’ Bedrock platform enables insurers to deploy and manage AI models tailored to underwriting needs, even for those without extensive machine learning expertise.

These innovations help insurers analyze vast amounts of data, from credit histories to social media activity, enabling them to detect potential fraud and streamline policy approvals.

Despite the impressive efficiency gains, AI-driven underwriting is not without challenges. One of the most pressing concerns is the potential for bias in AI models. If the algorithms are trained on biased data, the decisions they produce will reflect those biases, leading to unfair risk assessments.

Experts warn that traditional underwriting criteria, such as age, gender, and geographical location, may inadvertently discriminate against certain groups. 

Industry leaders stress the importance of addressing AI biases early in the development phase.

Russell Page, CTO of Hagerty, cautions that AI should never be used in ways that marginalize or harm specific demographics. Instead, insurers must proactively refine their models to ensure fairness and prevent discriminatory outcomes.

By doing so, AI can become a powerful tool in making underwriting both more efficient and equitable.

As AI continues to reshape insurance underwriting, the balance between efficiency and ethical responsibility remains critical. The technology's ability to analyze vast data sets, identify patterns, and automate labor-intensive tasks is transforming the industry.

However, ensuring that AI models promote fairness rather than amplify biases will be key to maintaining trust and credibility in AI-driven underwriting.