August 27, 2024
The central part of the insurance business is underwriting. Underwriting is a process, by which an insurer decides whether to accept a proposed risk or not – if the risk is accepted, the insurer needs to fix the price and terms. The person, who deals with matters of underwriting, is referred to as an underwriter.
In essence, by nature of their business, underwriters are the hub of an insurance company – they can make or break an insurance company. There is a joke that circulates in insurance that underwriters are ‘gate-keepers’ of an insurance company akin to bouncers at a get-together party. Surely, you know what bouncers are capable of doing – don’t you?