Underwriting Definition

Underwriting is the process of selecting, evaluating and approving or denying insurance coverage. Underwriters are the professionals who assess risk and determine whether or not to provide insurance coverage and at what terms.

There are several factors that underwriters consider when making their decisions, including the applicant’s health history, lifestyle and occupation. They also look at the type of coverage being applied for and the amount of coverage requested. Underwriters use this information to evaluate the risk involved in providing insurance coverage and to make sure that the premiums charged for the policy reflect that risk.

In some cases, underwriters may ask for additional information from an applicant before making a decision on coverage. They may also require an applicant to take a medical exam or submit to other tests in order to get a better picture of their health status.