Definition, Meaning & Synonyms

underwriting

Noun

/ˈʌndərˌraɪtɪŋ/

Definition

The process of evaluating the risk of insuring or financing an entity or individual.

Examples

The bank’s underwriting process helped them determine whether to approve the loan.
Underwriting is crucial in the insurance industry to manage risk effectively.

Meaning

Underwriting involves assessing the potential risks involved in providing insurance or loans and deciding the terms under which the coverage or financing will be offered.