What is underwriting ?

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Accepted Answer

Underwriting is the process of evaluating the risk of insuring a person or asset and determining the premium to be charged.

Underwriting involves assessing the risk associated with insuring a particular individual or asset.
Factors such as age, health, occupation, and lifestyle are considered during underwriting.
Underwriters use statistical models and historical data to predict the likelihood of a claim being made.
The premium charged for insurance is based on the level of risk identified during underwriting.
Examples of underwriting include life insurance underwriters evaluating an applicant's health and financial status, or property insurance underwriters assessing the condition of a building.