On the other hand, a company may lose money paying out claims if they accept too many risky applicants. Underwriters decide whether an applicant for insurance is an acceptable risk. They analyze information on insurance applications, reports from consultants, and medical reports. They also look at actuarial studies. These are reports that describe the odds of insurance loss.
Underwriters then decide whether to issue a policy.
If they do, they may outline their terms of the contract, including the amount of the premium. They may propose changes in policies to make applicants acceptable risks. Underwriters sometimes write letters to policyholders, agents, and managers. These letters may be about canceling policies or other matters. Sometimes, underwriters go with sales people to meet with future customers.