Underwriters create insurance policies and cover. They decide whether someone is a good risk and worth insuring. They also work out the cost of premiums for insurance providers.
In the context of car insurance, an underwriter is an individual or a company that assesses the risk associated with insuring a vehicle and determines the premium to be charged. They evaluate various factors such as the driver's age, driving history, vehicle type, and location to determine the likelihood of an accident or claim.
Based on this assessment, the underwriter calculates the appropriate insurance premium that the driver needs to pay. They play a crucial role in ensuring that the insurance policies are priced accurately and reflect the level of risk involved.