What is an underwriter

1. a person or company that underwrites an insurance risk."none of the five main British insurance underwriters would be willing to offer cover"
2. a bank or other financial institution that pledges to buy all the unsold shares in an issue of new shares."the issues are guaranteed success as the underwriters will buy whatever is not snapped up by the market"

What is the role of an underwriter?

Underwriters are responsible for deciding whether a borrower's loan application is approved or not. If a potential borrower applies for a loan from a mortgage, insurance, loan broker or any other type of financial institution, it is an Underwriter who evaluates risk presented by the entire loan application.

What is underwriting in simple words?

Definition: Underwriting is one of the most important functions in the financial world wherein an individual or an institution undertakes the risk associated with a venture, an investment, or a loan in lieu of a premium. Underwriters are found in banking, insurance, and stock markets.

Why do they call it an underwriter?

The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium.

What skills do you need to be an underwriter?

A good underwriter is also detail-oriented and has excellent skills in math, communication, problem-solving, and decision-making. Although a university degree isn't a requirement across the board, some employers may hire you if you have relevant work experience and computer proficiency.