For years, the most pressing questions surrounding artificial intelligence solutions for insurance underwriting concerned accuracy. In a sector where margins are thin and exacting calculations non-negotiable, could AI be accurate enough to trust?
Executive Summary
With insurance sector AI solutions, explainability was once a hindrance to widespread adoption. Those days are waning thanks to next-gen models, according to Gradient AI's Stan Smith.That question has largely been answered. Modern AI systems routinely outperform traditional actuarial and rules-based models across a range of underwriting applications. They uncover patterns humans overlook, integrate broader data sources, and continuously learn from outcomes. In terms of predictive performance, AI has arrived.
