What Does Underwrite Mean?

Underwriting services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee.

What do you mean by underwriting?

Underwriting is the process through which an individual or institution takes on financial risk for a fee. ... The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium.

What is underwriting with example?

For example, underwriters who work with health insurance companies evaluate the health risk of applicants. ... For example, an underwriter for a health insurance company will review medical details, while a loan underwriter will assess factors like credit history. An underwriter's job is complex.