Individual Underwriting by the Insurer

Individual underwriting by the insurer is a process in which the insurer assesses an individual's application for insurance to determine whether or not they should be granted a policy. The underwriting process includes examining elements such as the individual's current health, lifestyle habits, and financial history to decide if they could be at high risk or provide the potential for high rewards to the insurer. The result of the process is a quotation of a policy premium unique to the individual. Generally, the higher the risk, the higher the premium will be. Through this process insurers aim to assess their risk exposure and balance their books accordingly.