- An underwriter is a person who
- Examines, accepts or rejects insurance risks, and
- Classifies those selected risks, in order to charge the appropriate premium for each.
- The purpose of underwriting is to spread the risk among a pool of insured in a manner that is equitable for the insureds and profitable for the insurer.
What does an Underwriter do?
- The underwriter is an employee of the insurer who-
- Evaluates risk in insurance applications
- Accepts applications for insurance
- Declines applications for insurance
- Determines appropriate premium to charge for applicants
