underwriting

Assessing financial risk

Underwriting is the process of assessing and assuming risk, originally in insurance.

An underwriter evaluates whether to insure something and at what price: The company's underwriting standards have tightened.

In finance, underwriters guarantee the sale of securities, agreeing to buy any shares that don't sell to the public.

More broadly, to underwrite means to fund or sponsor: The foundation underwrites educational programs.

insurance

actuary

Financial risk analyst

deductible · claims · reinsurance · insurer · beneficiary · indemnity · exclusions · liability · morbidity · insurability

securities

IPO

First public stock offering

  • syndicateCombined group pursuing shared interest
  • prospectusFormal investment disclosure document
  • roadshowTraveling promotional presentation

allocation · pricing · offering · flotation · issuance · co-manager · spread · commission · stabilization · tombstone

approval

authorization

Formal permission granted

ratification · confirmation · clearance · acceptance · greenlight · go-ahead · sign-off · approval · validation · certification

evaluation

assessment

Formal evaluation of worth

scrutiny · review · examination · due diligence · risk assessment · credit analysis · inspection · investigation · consideration · deliberation

guarantee

assurance

Firm promise or certainty

commitment · guarantee · surety · guarantor · pledge · bond · warranty · security · protection · safeguard

risk

hazard

Source of potential harm

losses · liability · catastrophe · adverse selection · moral hazard · risk appetite · risk tolerance · risk mitigation · credit risk · market risk

Categories
Opposites
risk assessment role

underwritingclaims processing

Handling insurance submissions

indemnification

financial support/guarantee

underwritingdivesting

Disposing of possessions

divestment · abandoning · reneging · defaulting · backing out

risk assumption

underwritingdeclining

Decreasing in strength

rejecting · refusing · non-acceptance · denying · turning down

Family

underwritings

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G