Which entity typically performs underwriting in the insurance industry?

In the insurance industry, underwriting is primarily performed by insurers. Underwriting involves the process of evaluating the risk associated with insuring individuals or entities and deciding whether to accept or reject that risk. Insurers collect relevant information, assess potential risks, and determine appropriate premium rates based on this analysis. Their goal is to ensure that the insurance product they offer is financially sound and capable of covering the potential claims that may arise.

Claim adjusters are involved in the claims process, assessing and managing claims after a loss event occurs. Agents function as intermediaries between the insurer and the policyholders, facilitating the sale of insurance policies but do not typically engage in the detailed risk assessment involved in underwriting. Policyholders are the individuals or entities seeking insurance coverage and do not participate in underwriting; they provide information needed by the insurer but are not involved in the decision-making process regarding risk acceptance.

This delineation of roles highlights why insurers are the main entity responsible for underwriting within the insurance framework.