policy underwriting

Policy underwriting is the process used by insurance companies to evaluate the risk of insuring a person or entity. Underwriters assess various factors, such as health, history, and specific details related to the insurance being applied for (like home or auto). They determine the likelihood of a claim being made and decide how much coverage to provide and at what premium. This helps ensure that the insurance company can manage its financial risk while providing appropriate coverage to policyholders. Essentially, underwriting balances the needs of the customer with the company's financial stability.