Insurance underwriting is the process where the company checks your details before giving you a policy. It helps the insurer understand how risky it is to insure you.
For example, if you apply for life or health insurance, the company may ask about your age, health history, job, and lifestyle. They may also request medical tests.
If the risk is high, the premium may be higher, or the application may be declined. If the risk is low, you may get the policy quickly at a lower cost.
Underwriting helps insurance companies stay fair and strong. It also ensures that customers are charged properly based on their individual risk.
