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Insurance Glossary

Underwriting

Industry

Definition

The process by which an insurer evaluates the risk of insuring a person or property and determines coverage terms and premium rates.

Definición en Español

ES

Suscripción / Evaluación de Riesgos

El proceso mediante el cual una aseguradora evalúa el riesgo de asegurar a un cliente potencial y determina la prima y los términos de cobertura.

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Related Terms

Risk
The chance of loss or the person, property, or entity insured under a policy.
Premium
The amount paid by the policyholder to the insurance company for coverage, typically on a monthly, quarterly, or annual basis.
Actuary
A business professional who analyzes probabilities of risk and risk management, including calculation of premiums, dividends, and other applicable insurance industry standards.
Loss Ratio
The ratio of losses paid plus loss reserves to premiums earned, used by insurers to measure underwriting profitability and pricing adequacy.
Combined Ratio
The sum of the loss ratio and expense ratio, measuring an insurer's overall underwriting profitability. A ratio below 100% indicates underwriting profit.
Captive Insurance
An insurance company created and owned by a business or group of businesses to insure their own risks, providing more control over coverage and potential cost savings.
Surplus Lines Insurance
Insurance coverage from non-admitted insurers for risks that standard insurance companies won't cover, often for unusual or high-risk exposures.
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