Underwriting is a process by which the financial institutes and insurance agencies assess the credit worthiness or eligibility of the customer to receive its product. In banking, underwriting is the detailed credit analysis preceding the granting of a loan, based on credit information furnished by the borrower, such as employment history, salary, and financial statements, publicly available information, such as the borrower's credit history, which is detailed in a credit report and the lender's evaluation of the borrower's credit needs and ability to pay.
Insurance Underwriting would involve evaluation of the risks and exposures of potential clients. This is to decide the amount of coverage the client should receive, how much they should pay for it, or whether to even accept the risk and insure them. Underwriting involves measuring risk exposure and determining the premium that needs to be charged to insure that risk. The function of the underwriter is to acquire or to write business that will make the insurance company money, and to protect the company's book of business from risks that they feel will make a loss.
In United States, the insurance industry has experienced many ups and downs as companies strive to offer competitive products and services. Among the companies that have survived include Deep South Holding, led by David Disiere as its Chief Executive Officer, which has consistently responded to these changes through innovation in product offerings, organization and technology driven by an ongoing commitment to delivering exceptional value to our customers. Today the industry is asking for companies that can offer an extensive product and service portfolio to meet the evolving needs of our customers. This calls for a lot of innovation on the part of the companies.
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