What responsibility does an underwriter have?

The role of an underwriter in the insurance process primarily revolves around evaluating the risks associated with insuring potential clients and determining the appropriate terms for that insurance, which typically includes calculating the insurance premium. In this capacity, underwriters consider various factors such as the applicant's history, the type of coverage requested, and the overall risk presented. This careful assessment ensures that the premiums charged are adequate to cover the risks taken on by the insurer while remaining competitive in the market.

The other responsibilities, while important within the broader scope of insurance operations, do not fall under the specific purview of an underwriter. For example, investigating claims and imposing sanctions for regulatory breaches are typically handled by claims adjusters and compliance officers, respectively. Additionally, placing insurance business often involves brokers who work to connect clients with suitable insurance policies rather than the underwriters who assess risks and determine premiums for those policies. Thus, calculating the insurance premium is the correct representation of an underwriter’s core responsibility.