Underwriting Meaning in English
word · lemma: underwrite
Definition
Underwriting is the process where a person or company takes on the financial risk of an insurance policy, loan, or investment, usually for a fee. It often refers to assessing whether to accept someone for insurance or to guarantee the sale of securities.
Usage & Nuances
Used in formal, business, and financial contexts, especially insurance and investment. 'Underwriting' often appears with 'process,' 'criteria,' or 'department.' In insurance, it means risk assessment before issuing a policy; in finance, it can mean guaranteeing security sales. Not used in casual conversation.
Example Sentences
The underwriting process decides if you can get health insurance.
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Banks use underwriting to check your risk before giving a loan.
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The underwriting team checks every insurance application carefully.
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Without proper underwriting, the company could face huge losses if too many claims are made.
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Mortgage underwriting is sometimes slow because checking all your documents takes time.
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The bank's underwriting standards have become stricter since last year.
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