What is the main objective of underwriting?

The primary goal of underwriting is to assess risk and evaluate premium pricing. Underwriters analyze various factors related to applicants, such as their health history, lifestyle, and financial stability, to determine the likelihood of a claim being made. This process involves evaluating the risks associated with insuring an individual or group, which is crucial for setting appropriate premium rates.

The underwriting process ensures that the insurance company can maintain financial stability while effectively managing its risk exposure. By accurately assessing risk, underwriters can price the insurance policies in a way that reflects the potential costs to the company, balancing affordability for the customer with sustainability for the insurer.

The other options, while relevant to aspects of the insurance process, do not encapsulate the main objective of underwriting. Providing customer service support, determining legal compliance, and effectively marketing products are important functions within the broader insurance industry, but they do not define the core purpose of underwriting itself.