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Meaning of underwriting
The primary meaning of "underwriting" is the act of accepting financial responsibility for a project, loan, or investment, often in exchange for a fee or other benefit.
Etymology of underwriting
The word "underwriting" originated in the 15th century, derived from the phrase "to write under," which referred to the act of signing one's name at the bottom of a document
Historically, underwriting referred to the act of signing one's name under a document to indicate acceptance of its terms, and over time, the term evolved to encompass the concept of accepting financial responsibility for a project, loan, or investment
Synonyms
Definitions
- The act of insuring or guaranteeing something, especially a financial risk or investment
- The act of writing one's name under a document, such as an insurance policy or a contract, to indicate acceptance of its terms
- The process of assessing and assuming the risk of a loan or investment, often in exchange for a fee or other benefit
Usage Examples
- The bank provided underwriting for the small business loan, allowing the company to secure the necessary funding
- The insurance company's underwriting department assessed the risk of the policy and determined the premium
- The investor's underwriting of the project helped to secure additional funding from other investors