An Underwriter is often used as an alternative term for an insurer or insurance company. The underwriter accepts responsibility for the fulfilment of an insurance contract in exchange for the premiums he receives from the insured party. These responsibilities include the acceptance of risk through losses and the offer of indemnity to the insured.

Secondly, underwriter can also refer to the company’s employee who makes the decision as to whether or not the company should accept responsibility for a particular risk. Thirdly, the underwriter can be the approved and authorized agent or broker selling insurance on behalf of the company.

The underwriter sets the premiums after having calculated the risk according to a matching risk profile. He also decides what conditions and terms will be applicable to the specific contract. The underwriter has the responsibility of protecting the company against undesirable selection of risk coverage. He will take into account physical, psychological and moral hazards when considering an applicant and the risk involved.

The underwriter has certain rights that are clearly stipulated in the policy. One such right, for example, is to take possession of any damaged property and to deal with it in a responsible manner. He also has the right of subrogation (see subrogation for more details.)