What is Underwriting?

A definition of Underwriting

“Underwriting is the process by which financial institutions determine the risk of providing investment, insurance, loans, or securities to a client.”

Underwriting in Business Glossary - What is Underwriting?

Business Glossary > What is Underwriting?


Examples of Underwriting in a Sentence:

Underwriting is essential for assessing loan applications.

The underwriting process ensures that the risk is manageable.

Our company relies on strong underwriting practices to minimize losses.

Why is Underwriting Important in Business?

Understanding underwriting is crucial because it ensures that financial institutions only offer services to individuals or entities that fulfill certain criteria, thus minimizing risk and guaranteeing returns or coverage capabilities.

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Associated Terms

Here are some associated business terms and synonyms for “Underwriting”:

  • Risk Assessment
  • Insurance Approval
  • Credit Analysis

Lloyd’s of London Underwriting

Lloyd’s of London is renowned for its underwriting in the insurance sector, providing coverage for unique and complex risks that other insurers may not handle. Their expertise in underwriting policies is a cornerstone of their business operations.

Final Notes on Underwriting

When engaging in underwriting, companies should consider the accuracy of data, the potential for unforeseen risks, and regulatory compliance. These factors help ensure sound underwriting decisions.


This has been a definition of Underwriting meaning.

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