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- DictionaryUn·der·write/ˈəndə(r)ˌrīt/
verb
- 1. sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs.
- 2. (of a bank or other financial institution) pledge to buy all the unsold shares in (an issue of new securities).
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What does underwrite mean?
Where did the term underwrite come from?
What is underwriting in finance?
What does underwriting a policy mean?
To underwrite is to write under or at the end of something else, to set one's name to an insurance policy, to agree to purchase or support something, or to guarantee financial support of something. See synonyms, examples, history, and legal usage of the word.
Learn the meaning of underwrite in finance, insurance, and stock market contexts, with examples and pronunciation. Find out how to use underwrite in a sentence and see translations in different languages.
- What Is Underwriting?
- How Underwriting Works
- How Long Does Underwriting take?
- What Information Do Underwriters Look at?
- How Underwriting Sets The Market Price
- The Bottom Line
Underwriting is the process through which an individual or institution takes on financial risk for a fee. This risk most typically involves loans, insurance, or investments. The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium....
Underwriting involves conducting research and assessing the degree of risk each applicant or entity brings to the table before assuming that risk. This check helps to set fair borrowing rates for loans, establish appropriate premiums to adequately cover the true cost of insuring policyholders, and create a market for securitiesby accurately pricing...
The time frame for underwriting varies among different investment products, as the underwriter will have to spend some time examining the risk profile of each investment. Personal loans and insurance products are generally fairly simple to underwrite.
Whether they are lending money or providing insurance, underwriters examine the financials of each applicant to determine how much risk they are taking on and the likelihood of losing money. This is generally done by comparison to historical data: If applicants with a similar risk profile tend to default X% of the time, then the premiums or interes...
Creating a fair and stable market for financial transactions is the chief function of an underwriter. Every debt instrument, insurance policy, or IPO carries a certain risk that the customer will default, file a claim, or fail—a potential loss to the insurer or lender. A big part of the underwriter's job is to weigh the known risk factors and inves...
Underwriting is the process of examining the financials of a loan or insurance application to determine how much risk they pose to a lender or insurer. This usually means checking the applicant's income, assets, and credit history to determine the likelihood that they will end up costing the underwriting institution more than they pay in premiums.
May 1, 2023 · An underwriter is a party that evaluates and assumes another party's risk in mortgages, insurance, loans, or investments for a fee. Learn about the history, types, and roles of underwriters in different financial areas, such as mortgage, insurance, equity, and debt markets.
Learn the meaning and usage of the verb underwrite, which can mean to sign, support, guarantee, or insure something. See synonyms, origin, and examples of underwrite in sentences.
underwrite: 1 v protect by insurance Synonyms: cover , insure cover to take an action to protect against future problems compensate , cover , overcompensate make up for shortcomings or a feeling of inferiority by exaggerating good qualities Types: reinsure insure again by assuming all or a part of the liability of an insurance company already ...
2 days ago · Learn the meaning of underwrite as a verb in finance, insurance and other contexts, with synonyms and example sentences. Find out how to pronounce underwrite in British and American English.
