9 Jun 2018

Underwriting

Finance feed by:

CA Sushil Modi
M.com,CA
CA in Job
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   •    15 Year 8 Month  experience

Underwriting is one of the most important functions in the financial world wherein an individual or an institution undertakes the risk associated with a venture, an investment, or a loan in lieu of a premium. Underwriters are found in banking, insurance, and stock markets.

The nomenclature ‘underwriting’ came about from the practice of having risk takers to write their name below the total risk that s/he undertakes in return for a specified premium in the early stages of the industrial revolution.

Today, underwriting is one of the key functions in the financial world and has become a discipline of sorts in itself. We can have underwriting in Insurance sector, financial market , banking sector etc.

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