Glossary • Definition

What is underwriting?

Underwriting is the process insurers use to assess risk and decide how much to charge, what terms to offer, and whether to provide cover.

In simple terms

Underwriting is how insurers decide the level of risk you represent. This helps determine your premium, excess levels, and policy conditions.

Age, experience, and previous claims history can influence underwriting outcomes.

Comprehensive vs basic cover levels may affect risk assessment.

Where you live or how you use an item (e.g., commuting vs business) may affect underwriting.

Claim-free history can reduce perceived risk.

Underwriting determines the level of risk — pricing converts that risk into a premium.

Driving history and vehicle details influence underwriting.

Property type, rebuild value, and location can affect risk.

Health and lifestyle information may be considered.

Underwriting plays a key role in pricing.

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