Last Updated: 4/7/2026

Underwriting in insurance is the process an insurer uses to examine risks and determine the appropriate rate for coverage provided. Life underwriters examine all the data gathered in the application process to classify and group the risk to charge accurate premiums. Historically, this application data included a physical exam with doctor’s notes, blood work, and urine analysis. As consumers increasingly expect on-demand digital services, some insurers are using accelerated underwriting (AU) techniques to forgo a physical exam and supplement the application process with data from external sources along with new analytics and modeling techniques. This can effectively reduce the length of the application process from several weeks to just a few hours. 

Traditional life insurance underwriting requires the collection of extensive medical information including a physical exam and fluids testing (blood, urine, and saliva). The timeline from the start of the application process to the issuance of a policy can be up to a few months. Some insurers also use simplified underwriting techniques which allow an applicant to forgo the medical exam and collection of fluids in exchange for generally higher premiums.

Insurers have found the traditional underwriting process to be an obstacle to purchase for consumers shopping for life insurance, in large part due to the physical exam and long application time. In response, the industry is implementing AU techniques that eliminate the physical exam and incorporate data from external sources, like prescription drug history and motor vehicle records, to process applications in a matter of hours. In addition to reducing the application time, the use of these techniques offer benefits to both insurers and consumers, including increasing sales, reducing administrative costs, and minimizing fraud.

Besides the information provided on the application, the data for AU techniques come from many sources including credit reports, motor vehicle records, and the Medical Information Bureau.  In addition, insurers increasingly rely on external data sources, predictive models and algorithmic or machine learning techniques to evaluate risk and determine eligibility for accelerated pathways.

NAIC regulatory guidance highlights that these models must rely on sound actuarial principles, transparent data inputs, and be evaluated for unfair discrimination. However, AU alone does not always lead to issuance of a policy. For some applicants, the available data will be insufficient to adequately evaluate their risk profile, so they will still need to complete the traditional underwriting process, including the physical exam. While AU offers operational and consumer benefits, the increased use of external data, predictive models, and AI introduces regulatory considerations related to data quality, governance, transparency, and potential unfair discrimination. These considerations are central to NAIC guidance and oversight efforts. 

Following significant expansion of accelerated underwriting during and after the COVID-19 period (2020–2022), the NAIC’s Accelerated Underwriting (A) Working Group completed an educational report in 2022 and later developed regulatory guidance on the use of external data and data analytics in accelerated life underwriting. That guidance was adopted by the Life Insurance and Annuities (A) Committee on August 14, 2024, together with a referral recommending updates to the Market Regulation Handbook. 

The regulatory guidance is designed to provide a framework for regulators reviewing insurers’ use of accelerated underwriting programs, including considerations related to data sources, predictive models, and potential unfair discrimination. Following completion of this work, the Accelerated Underwriting (A) Working Group was disbanded in late 2024. 

As of 2025–2026, oversight of insurers’ use of external data, predictive models, and AI in underwriting continues through multiple NAIC groups. The Market Conduct Examination Guidelines (D) Working Group is responsible for incorporating accelerated underwriting considerations into examiner guidance and the Market Regulation Handbook, consistent with the 2024 referral. The Big Data and Artificial Intelligence (H) Working Group continues broader NAIC efforts to evaluate insurer use of AI and external data, including work following adoption of the NAIC Model Bulletin on the Use of Artificial Intelligence Systems by Insurers in December 2023 and ongoing coordination across NAIC committees.