What is the purpose of underwriting in insurance?

The purpose of underwriting in insurance is primarily to assess risk and determine premiums. Underwriting involves a detailed evaluation of an applicant's risk profile, which includes their health history, lifestyle choices, occupation, and other factors that may impact the likelihood of a claim being made.

By accurately assessing these risks, underwriters can set premiums that reflect the level of risk associated with insuring an individual or entity. This ensures that the insurance company can remain financially viable while also providing coverage that fits the needs of the insured. Proper underwriting helps balance the need for competitive pricing with the necessity of maintaining the insurer's profitability and minimizing losses.

Other roles noted in the options, such as marketing insurance products, managing claims, and providing customer service, are essential functions in their own right, but they do not directly relate to the core purpose of underwriting, which is focused on risk assessment and premium determination.