In the insurance market, who is typically responsible for underwriting policies?

Underwriters are the professionals in the insurance market who are responsible for assessing risk and determining the appropriate terms and pricing for insurance policies. Their primary role involves evaluating applications for insurance coverage, analyzing various risk factors associated with the potential insured, and making decisions on whether to accept or decline such applications.

Underwriters use a variety of data and analytical tools to assess the risks posed by potential policyholders and set premiums accordingly. They play a crucial role in ensuring that the insurance company maintains profitability while offering competitive prices to customers.

In contrast, loss assessors are engaged primarily after a claim has been made, to evaluate the extent of damage and the validity of the claim. Brokers serve as intermediaries between the insured and the insurers, helping clients find suitable coverage but not directly underwriting policies themselves. Agents typically represent an insurance company, selling policies on their behalf but are not directly involved in the underwriting process. Hence, underwriters are the designated professionals who carry out this pivotal function in the insurance industry.