Objectives of underwritting

Answer 1

The primary objectives of underwriting include assessing risk, determining the appropriate terms and conditions for coverage, and ensuring that the insurer remains financially viable. Underwriters evaluate applications to decide whether to accept or reject them based on risk factors, financial stability, and relevant regulations. Additionally, underwriting aims to set premiums that accurately reflect the level of risk associated with the insured party. Ultimately, it helps maintain the balance between risk management and profitability for the insurance company.