Underwrite: meaning, definitions and examples

๐Ÿ’ฐ
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underwrite

 

[ หˆสŒndษ™rหŒraษชt ]

Verb
Context #1 | Verb

insurance industry

Underwrite means to assume financial responsibility for a risk or venture. In the insurance industry, underwriters evaluate the risk factors involved in insuring a person or asset and determine the premium to be charged.

Synonyms

back, guarantee, insure.

Which Synonym Should You Choose?

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Word Description / Examples
underwrite

Used in financial contexts, particularly when referring to the act of agreeing to take on the risk of an investment or loan, often by a financial institution.

  • The bank agreed to underwrite the company's $5 million loan.
  • This project was underwritten by a leading investment firm.
insure

Specifically refers to providing insurance, which means offering financial protection against potential future losses or damages.

  • It's important to insure your house against fire and theft.
  • They insured their new car with a comprehensive policy.
guarantee

Used when someone or something assures the fulfillment of a condition or the quality of a product. It implies a promise or assurance, often formal or legal.

  • The manufacturer guarantees that all their products are free from defects.
  • I can guarantee you will love this book.
back

Commonly used in general language when someone supports or funds a project, person, or idea.

  • She decided to back his new business venture.
  • The charity event was backed by several local businesses.

Examples of usage

  • Insurance companies underwrite policies to determine the level of risk involved.
  • The underwriter decided to approve the insurance application based on the risk assessment.
  • The underwriting process involves assessing the likelihood of a claim being made.
  • Investment banks also underwrite securities offerings for companies looking to raise capital.
  • Underwriting involves analyzing data to make informed decisions about risk.
Context #2 | Verb

finance

In finance, underwrite refers to the process of guaranteeing a minimum level of proceeds from a security offering. Underwriters commit to purchasing unsold shares to ensure the success of the offering.

Synonyms

finance, fund, support.

Which Synonym Should You Choose?

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Word Description / Examples
underwrite

Typically used in financial settings where a party, often an insurance company or a financial institution, agrees to take on the financial risk for an event or investment.

  • The bank decided to underwrite the new housing development project.
  • The insurance company will underwrite the policy for natural disasters.
finance

Used when providing the funds necessary for a specific project, business, or purchase. It is often seen in both personal and corporate contexts.

  • They needed a loan to finance their new car.
  • The government plans to finance several infrastructure projects next year.
fund

Commonly used to describe the allocation of money or resources towards a particular purpose, such as a project, organization, or event. It is usually in a formal or official capacity.

  • The startup is looking for investors to fund their innovative app.
  • The charity event was funded by several local businesses.
support

A more general term that means providing assistance, which may include financial help, but can also encompass emotional or logistical support. It is versatile across different situations.

  • Her family supported her decision to study abroad.
  • The company supports various environmental initiatives through donations and volunteer work.

Examples of usage

  • The investment bank underwrote the initial public offering to provide financial support.
  • Underwriters play a crucial role in ensuring the success of new stock offerings.
  • Companies rely on underwriters to help them raise capital through the sale of securities.

Translations

Translations of the word "underwrite" in other languages:

๐Ÿ‡ต๐Ÿ‡น subscrever

๐Ÿ‡ฎ๐Ÿ‡ณ เค…เค‚เคกเคฐเคฐเคพเค‡เคŸ

๐Ÿ‡ฉ๐Ÿ‡ช versichern

๐Ÿ‡ฎ๐Ÿ‡ฉ menjamin

๐Ÿ‡บ๐Ÿ‡ฆ ะณะฐั€ะฐะฝั‚ัƒะฒะฐั‚ะธ

๐Ÿ‡ต๐Ÿ‡ฑ ubezpieczyฤ‡

๐Ÿ‡ฏ๐Ÿ‡ต ๅผ•ใๅ—ใ‘ใ‚‹

๐Ÿ‡ซ๐Ÿ‡ท souscrire

๐Ÿ‡ช๐Ÿ‡ธ suscribir

๐Ÿ‡น๐Ÿ‡ท sigortalamak

๐Ÿ‡ฐ๐Ÿ‡ท ์ธ์ˆ˜ํ•˜๋‹ค

๐Ÿ‡ธ๐Ÿ‡ฆ ูŠูƒุชุชุจ

๐Ÿ‡จ๐Ÿ‡ฟ pojistit

๐Ÿ‡ธ๐Ÿ‡ฐ poistiลฅ

๐Ÿ‡จ๐Ÿ‡ณ ๆ‰ฟไฟ

๐Ÿ‡ธ๐Ÿ‡ฎ zavarovati

๐Ÿ‡ฎ๐Ÿ‡ธ tryggja

๐Ÿ‡ฐ๐Ÿ‡ฟ ัะฐา›ั‚ะฐะฝะดั‹ั€ัƒ

๐Ÿ‡ฌ๐Ÿ‡ช แƒ“แƒแƒ–แƒฆแƒ•แƒ”แƒ•แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ sฤฑฤŸortalamaq

๐Ÿ‡ฒ๐Ÿ‡ฝ suscribir

Etymology

The term 'underwrite' originated in the 16th century from the Old English 'underwritan', meaning 'to sign at the bottom of a document'. Over time, it evolved to represent the act of assuming financial responsibility for a risk or venture. The concept of underwriting has since become integral to the insurance and finance industries, shaping the way risks are assessed and managed.

See also: overwrite, rewrite, underwriter, writ, write, writer, writers, writing, written.

Word Frequency Rank

Positioned at #22,160, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.