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The phrase "are understood to" is correct and usable in written English.
It can be used when indicating a general consensus or common interpretation of a situation or statement.
Example: "The results of the study are understood to indicate a significant correlation between the two variables."
Alternatives: "are perceived to" or "are believed to".
Exact(59)
Celtic are understood to be one.
Concussions are understood to be especially damaging.
Both men are understood to deny wrongdoing.
The vast majority are understood to be overwhelmingly negative.
Landsbanki and other creditors are understood to be owed £1bn.
About 130 staff are understood to have taken voluntary redundancy.
But the witnesses are understood to be civilians.
Talks with ThyssenKrupp are understood to be progressing well.
The men are understood to have changed under the bridge.
Investors are understood to want 100p, or £43m.
Chelsea are understood to be among the leading candidates.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com