INSURANCE
CONTENT
- Underwriting and Reinsurance
- Types of Risks
- Terms Frequently Used in the Insurance Industry
- The Importance of Insurance
Meaning of Underwriting
Underwriting is the process of measuring risk exposure and determining the premium that needs to be charged to insure the risk. It also means an undertaking to compensate an insured for a risk or part of the risk. This is common in marine insurance because of the enormous cost involved which cannot be borne by one insurance company.
Underwriter is a marine insurer who offers to cover, underwrite or assume a portion of a risk. The underwriter would write under the details of the risk, his name and the proportion he has accepted. A very good example is the Lloyd Underwriter, an association of London underwriters incorporated in 1871 by Edward Lloyds. They are organized in syndicates that undertake a fraction of the risks brought to them by the agent of the shippers. Lloyd’s underwriter is not a corporation, but it provides facilities to members to transact business and is not responsible for losses incurred by the underwriter.
- NEW: Download the entire term's content in MS Word document format (1-year plan only)
- The complete lesson note and evaluation questions for this topic
- The complete lessons for the subject and class (First Term, Second Term & Third Term)
- Media-rich, interactive and gamified content
- End-of-lesson objective questions with detailed explanations to force mastery of content
- Simulated termly preparatory examination questions
- Discussion boards on all lessons and subjects
- Guaranteed learning