CANADIAN INSURANCE TERM
Underwriting
The process an insurer uses to assess a risk and decide whether to insure it and on what terms, within applicable law and regulation.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermUnderwriting
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Underwriting mean?
The process an insurer uses to assess a risk and decide whether to insure it and on what terms, within applicable law and regulation.
Underwriting is related to pricing but is not identical to pricing. An insurer can evaluate eligibility, conditions, limits and risk characteristics before a final premium is determined.
Underwriting in practice
Property age, claims history, business operations or driving history can be part of underwriting depending on the insurance product and provincial rules.