An underwriter assesses applications for insurance and sets the price and conditions. They look at the chance of a claim and how large it could be. Some risks are accepted as applied for, some are accepted only with exclusions or higher premiums, and some are declined.
Key takeaways
- Underwriters turn risk data into a yes, no, or yes with conditions.
- Honest disclosure on the application matters; hiding material facts can later void a claim.
- Underwriting standards differ by product: life medical checks differ from motor vehicle ratings.
- Related term underwriting is the whole process; the underwriter is the person or team doing it.