The Role of Underwriting in Insurance Risk Management and Pricing

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Source: The Role of Underwriting in Insurance Risk Management and Pricing

Underwriting is a core function in the insurance industry that enables insurers to assess risk, determine appropriate coverage, and set fair premium prices for individuals and businesses. By evaluating factors such as health history, credit scores, financial stability, business operations, and past claims, underwriting helps insurers balance their risk portfolios through diversification and avoid excessive exposure to high-risk policies. A sound underwriting process supports financial stability.

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