An insurance underwriter is a financial professional who assumes the risk of insuring people and assets, and sets the prices for the risk. Underwriters evaluate policies to determine which risks they should take on and set appropriate premiums. They also decide which types of policies to offer, review applications, and analyze data to determine risk and eligibility.

Insurance underwriters play an important role in the insurance industry by assuming and managing the risk associated with insuring people and assets. By providing a dedicated team of knowledgeable professionals to assess risk, underwriters are able to provide their clients with coverage they can trust.

Underwriters in the investment banking sector play an important role by setting minimum share prices for an initial public offering (IPO). By guaranteeing a minimum price, underwriters protect the company from losses and ensure that their investments are secure.

Commercial banking underwriters assess the risk of loan applications and charge interest to cover the costs of taking on that risk. The terms of a loan, such as interest rates, loan amount, repayment method, and other stipulations, are established by the underwriter.

In addition to the two types of banking underwriters, insurance underwriters analyze applicants' information and decide what type of policy should be offered, and at what cost. They use risk management frameworks to assess the applicant's information to determine if a risk is worth offering them coverage and what level of risk the policy should involve. They also review the applicant's current and previous policies to determine if they may qualify for risk-reducing discounts.

Insurance underwriters help protect consumers and protect companies from potential financial losses related to insurance policies. They are responsible for ensuring that policies are appropriate and administered properly so clients can be assured of adequate coverage and protection.