give some details on underwriting

by abialsen » Sat Nov 21, 2009 07:18 pm

i need to know what underwriting really means in insurance

Total Comments: 1

Posted: Sun Nov 22, 2009 10:20 pm Post Subject:

Underwriting is the process of assessing the risk presented to the insurer, deciding on whether or not to offer cover and if so on what terms.

When you submit an application for insurance, an underwriter looks at the information and assesses the level of risk your situation presents to the insurer, and if they want to insure you. Underwtiting also (any more commonly) involves the setting of premiums and limitations in cover.

If you have a history of auto insurance claims for example and apply for cover with a new insurer, they will charge you more than if you had a clean record, or may choose to exclude certain types of cover, or do other things like set higher deductibles.

Underwriting is the process of assessing risk, determining whether to offer cover, and if so on what terms.

Hope this helps.

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