What distinguishes manual underwriting from automated underwriting?

The distinction between manual underwriting and automated underwriting primarily lies in the assessment methods used in each process. Manual underwriting involves a human underwriter who reviews the applicant's information, evaluates the risk based on their judgment and experience, and makes decisions regarding the application. This process allows for a nuanced understanding of individual cases, taking into account complexities and unique circumstances that might not be captured in data alone.

In contrast, automated underwriting utilizes algorithms and data-driven models to assess risk and make underwriting decisions. This method often relies on predefined criteria and computational processes to evaluate applications quickly and efficiently.

The focus on human assessment in manual underwriting means that underwriters can incorporate personal judgment and professional expertise, which may be crucial for complex cases, while automated underwriting is faster and handles a higher volume of applications, but may lack the depth of consideration provided by human insight.