underwriting models

Underwriting models are tools used by financial institutions to assess the risk of lending money or insuring someone. They analyze data such as credit history, income, health, or property details to estimate the likelihood of repayment or claims. By calculating these risks, the models help decide whether to approve applications and what terms to offer, like interest rates or coverage limits. Essentially, underwriting models aim to balance providing access to services with managing potential financial losses, making decisions more consistent, objective, and data-driven.