# underwriting

/ˈəndɝˈɹaɪtɪŋ/ (US) · /ˌʌndəɹˈaɪtɪŋ/ (UK)

Source: https://englishreference.com/word/underwriting
Updated: 2026-08-27

## Senses

### 1. risk assessment

noun · CEFR C1 · Technical

the process of checking if a person or project is a safe risk before giving insurance or a loan.

For teachers: the formal process of evaluating the risk of a potential client or project to determine coverage, pricing, or creditworthiness.

- The bank's underwriting process took two weeks because they had to check my credit history.
- Strict underwriting standards were implemented to ensure that the insurance firm remained solvent during the economic downturn.

Usage: Often used as an uncountable noun in business contexts.

### 2. financial backing

noun · CEFR C1 · Technical

the act of agreeing to pay for something or support a new business deal.

For teachers: the act of providing a financial guarantee or backing for a new issue of securities or a large-scale project.

- The company secured the underwriting for their new project from a major investment bank.
- The investment bank provided the underwriting for the initial public offering, agreeing to purchase any shares that remained unsold to the public.

Usage: Commonly appears in the context of IPOs and large corporate contracts.

## Examples

- The bank is finishing the underwriting for my new house loan.
- Strict underwriting standards help insurance companies remain profitable by ensuring they do not take on too many high-risk clients.
- The collapse of the housing market was partly attributed to a significant decline in underwriting quality, as lenders approved mortgages for borrowers with insufficient credit histories.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.