Definition: Insurance underwriting is the process of choosing who and what the insurance company decides to insure. This is based on a risk assessment. It is pretty much the "behind the scenes" work in an insurance company where they determine who is insured and how much in insurance premiums they will charge the insured person. Insurance underwriting also involves choosing who the insurance company will not insure.
Examples: Jane went to her insurance agent to get a car insurance policy. After she told the insurance agent that she had driven without a license and insurance for 5 years and was in jail for reckless driving three times, the insurance agent said that their insurance underwriting department would not insure her because they feel she is too much of a risk.
