Definition - What does Underwriter mean?
Insurance companies usually assume billions of dollars as a risk annually. This is to protect the insured individuals and companies from losses. Underwriters are responsible for calculating risks from the policyholders, coming up with suitable premium rates, and forming various policies covering these risks.
Justipedia explains Underwriter
This is an important job for any insurance company, as it may fall behind the competition if an underwriter assesses a risk conservatively.
In case the underwriting is too lenient or liberal, the insurance company might have to face more claims than usual. Underwriters usually go about analyzing the risk by studying the insurance application.