Definition, Meaning & Synonyms

underwriter

noun

ˈʌndərˌraɪtər

Definition

An underwriter is a person or company that evaluates and assumes the financial risk of insuring something or providing capital for a security issue, ensuring that the transaction is financially viable.

Examples

In the insurance sector, an underwriter assesses risk before issuing a policy.
The underwriter evaluated the company’s financial health before approving the loan.
After careful consideration, the underwriter decided to decline the application.

Meaning

An underwriter plays a critical role in various financial transactions, primarily in the insurance and finance industries, by guaranteeing payment for a risk taken or a financial security offered.