What is the primary role of an underwriter in insurance?

The primary role of an underwriter in insurance is to evaluate risks and determine insurance rates. Underwriters assess the likelihood of a policyholder filing a claim based on various factors such as the individual's health, lifestyle, or business operations, depending on the insurance type. By analyzing this information, they help the insurance company decide whether to accept the risk and at what premium rate. This process is essential for maintaining the insurer's financial stability and ensuring that the premiums charged align with the actual risk involved.

In contrast, selling policies directly to customers is typically the role of agents or brokers, and managing claims falls under the claims adjuster or claims manager’s responsibilities. Providing financial advice is usually not the function of an underwriter, as they focus specifically on risk assessment rather than offering personalized financial guidance.