Underwriting in the insurance industry involves evaluating, assessing, and deciding on the acceptability of insurance risks. Underwriters review applications, gather relevant information about the applicant’s risk profile and make decisions on issuing coverage, setting terms, and determining premiums.

They assess the likelihood and severity of risks associated with insuring individuals, businesses, or assets, using guidelines to ensure compliance with company policies and regulatory standards. Underwriting plays a crucial role in maintaining insurers’ financial stability by accurately pricing policies based on risk assessment and balancing profitability with risk management to protect against potential losses.