What is 'account underwriting'?

'Account underwriting' refers to a process where underwriters evaluate the overall risk of a business or entity rather than just individual policies. This comprehensive approach is integral in commercial insurance, where understanding the entire risk profile of an organization is critical to setting appropriate premiums and coverage terms. By assessing the business as a whole, underwriters can identify patterns, potential hazards, and aggregate exposures that may not be evident when looking at individual policies in isolation. This holistic view enhances the underwriting process, allowing for a more accurate determination of risk and better decision-making regarding insurance offerings.

This method contrasts with merely evaluating individual policies or focusing solely on personal lines, as it takes into account the entire operation and its unique risks. Additionally, account underwriting is not directly related to the claims process, which is distinct from the risk assessment and underwriting activities.