Underwriting
The insurer's process for assessing risk and deciding whether to offer coverage, on what terms and at what price.
Also called
risk assessment
What it means
Evaluation of information about the applicant and risk before or during the policy relationship.
Example
An insurer may consider a property's age, location and prior losses when underwriting home insurance.
Canada context
Insurance wording and mandatory coverage can differ by province, insurer and policy form. Read the declarations, endorsements and full policy wording that apply to you.
Common confusion
Underwriting decides risk acceptance and terms; claims adjusting evaluates a reported loss.
Important
This plain-language explanation is general information, not legal advice or a substitute for your policy wording. Ask a licensed insurance professional about your situation.
Last reviewed August 17, 2026
Sources
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.