Manual Underwriting
Manual underwriting is a process in finance and insurance where a human underwriter evaluates applications for loans, insurance policies, or other financial products by analyzing individual factors such as credit history, income, assets, and risk factors, rather than relying solely on automated systems. It involves a detailed, case-by-case assessment to make approval decisions, often used for complex or non-standard cases that don't fit automated criteria. This method allows for greater flexibility and nuanced judgment in assessing risk and eligibility.
Developers should learn about manual underwriting when working on financial technology (fintech) applications, insurance software, or lending platforms that require custom risk assessment logic or integration with underwriting workflows. It's crucial for building systems that handle exceptions, support regulatory compliance, or process applications for borrowers with unique financial situations, such as self-employed individuals or those with thin credit files. Understanding this methodology helps in designing user interfaces, data pipelines, and decision-support tools for underwriters.