Insurance Glossary

Underwriting

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is underwriting?

Underwriting is how an insurer evaluates a risk and decides whether to offer cover, on what terms, and at what premium. It considers the item insured, the applicant's history and the likelihood of a claim.

Example

During underwriting, an insurer might apply a higher premium or an extra condition for a driver with several recent claims.

Related insurance terms

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