Insurance underwriting is the process used by insurance companies to evaluate the risk of insuring a person or asset. Underwriters analyze various factors, such as health history, lifestyle, and property conditions, to determine the likelihood of a claim being made. This assessment helps the insurer decide whether to offer coverage and at what premium rate. The goal of underwriting is to ensure that the insurance company remains financially stable while providing coverage to policyholders. By carefully assessing risks, underwriters help maintain a balance between offering affordable insurance and protecting the company from potential losses.