Automated Underwriting

The automated underwriting process is mainly technology-driven, and it provides the user with a generated loan decision. The insurance landscape has mostly migrated to using new technology options like loan underwriting platforms because they help enhance the processing time for various loan types. The automation of the underwriting process includes risk evaluation that involves financial transactions for various industries like health, mortgage, automobile, and so on. 

The automation of the underwriting process is carried out in many capacities across the industry. Businesses are making use of automated platforms like Botminds AI for underwriting because of its ability to automatically highlight the risks hidden in various documents. Once underwriters automate the process of extracting key information that predicts risks, loan decisions can be made within minutes. Underwriting automation allows the AI to understand specific domains and the reasoning behind important decisions. When bots are powered by SME intelligence, the whole underwriting process can be scaled to one click. 

Be it medical history of a patient or business performance of an organization, the challenges in underwriting remains the same. 

Analysing risks thoroughly by reading all submitted documents is a tedious job for underwriters. Risk evaluation is completely subjective and depends on the underwriter's analysis and understanding of the case. Auditing is broken with information used for decisions are not linked with actual source documents. Asking for more supporting documents and searching for more information to do right underwriting is fraught with lack of standardization. With huge number of policies to be underwritten it needs an automation solution to scale non-linearly and to ride over the challenges of seasonality in volume.  

The automated underwriting process is known for using quick algorithms to analyze the client’s finances or health history. On the other hand, manual underwriting takes longer to complete and there are high chances of encountering human errors. This is because it depends on the SMEs executing the underwriting process and assessing the client’s financial process.

Manual underwriting needs quite a lot of paperwork which includes bank statements, tax returns, employment proof, demographic profiles, and medical history. Once the customer provides the underwriter with this information, then they continue with the loan process and analyse the risks in providing the loan. 

The automated underwriting process is 100% error-free and lender companies rely on it to manage conventional loans and credit cards better.  

When you partner with reputed automated underwriting process platforms like Botminds, you can use basic loan application information to retrieve relevant data.   The automated underwriting platform will also process the borrower’s information to instantly make loan decisions. 

There are many benefits to switching to an automated underwriting process.  The automation platform helps streamline operations and improve the efficiency of a lending company. The automated process is useful to analyse client data and flag any critical errors this will help with accuracy and verification. The companies that use automated underwriting platforms can have better control of creating new policies, along with pricing.   The automated underwriting process is overall faster, more accurate and reliable compared to a manual process.  Algorithms and AI models analyse underlying risks and provide inputs for better and quicker loan decisions for lender organisations. They can flag or highlight aspects that need manual verification or intervention.         The automated underwriting platform will also process the borrower’s information to instantly make loan decisions.