Underwriting: meaning, definitions and examples
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underwriting
[ ˈʌndərˌraɪtɪŋ ]
insurance process
Underwriting refers to the process by which an insurer evaluates the risk of insuring a client or asset. This evaluation determines the terms, conditions, and premium pricing of the insurance policy. Underwriters analyze various factors such as financial histories, health conditions, and industry standards. They seek to minimize potential losses for the insurance company while providing coverage for the client. The process is crucial in maintaining the balance of risk and reward in the insurance industry.
Synonyms
appraisal, evaluation, risk assessment
Examples of usage
- The underwriting process can take several days.
- She works in the underwriting department of the insurance company.
- Strong underwriting standards can help prevent financial losses.
Translations
Translations of the word "underwriting" in other languages:
🇵🇹 subscrição
🇮🇳 बीमा अधिग्रहण
🇩🇪 Risikoprüfung
🇮🇩 penjaminan
🇺🇦 андеррайтинг
🇵🇱 ubezpieczenie
🇯🇵 引受け
🇫🇷 souscription
🇪🇸 suscripción
🇹🇷 sigorta teminatı
🇰🇷 인수
🇸🇦 تأمين
🇨🇿 zajištění
🇸🇰 poistenie
🇨🇳 承保
🇸🇮 zavarovanje
🇮🇸 skilyrðing
🇰🇿 қамсыздандыру
🇬🇪 დაფარვა
🇦🇿 sığorta
🇲🇽 suscripción
Etymology
The term 'underwriting' has its origins in the late 17th century, derived from the practice where individuals would write their names beneath a document to assume a share of the liability. The prefix 'under-' indicates a subordinate or secondary role, while 'writing' signifies the act of inscribing. Initially, underwriting was primarily associated with marine insurance, where underwriters would evaluate ships and cargo risks and agree to cover those risks for a fee. Over time, the concept expanded to encompass various forms of insurance, including life, health, and property. The profession evolved, and specialized roles emerged within the insurance industry, highlighting the importance of thorough assessments to determine appropriate coverage and pricing structures.
Word Frequency Rank
Ranked #11,887, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.
- ...
- 11884 igneous
- 11885 flute
- 11886 atrial
- 11887 underwriting
- 11888 intelligently
- 11889 serviceable
- 11890 mattered
- ...