What is the purpose of an underwriting audit?

The purpose of an underwriting audit is primarily to review and assess the underwriting decisions and processes for compliance and accuracy. This involves a thorough examination of the underwriting files, processes, and practices to ensure that they align with regulatory requirements and internal standards. An underwriting audit helps identify any inconsistencies or areas needing improvement, thus enhancing the overall quality of underwriting decisions.

Through auditing, insurance companies can ensure that risk assessments are conducted appropriately, pricing is accurate, and that policies are issued according to company guidelines. This process ultimately helps mitigate potential losses, reduces errors, and ensures that the underwriting practices conform to both legal regulations and the company's objectives.

The other options focus on different aspects of the insurance business. Evaluating marketing strategies pertains to understanding market positioning and customer outreach, which does not directly relate to the underwriting process. Determining the financial stability of the insurance company is more concerned with its overall financial health rather than individual underwriting decisions. Analyzing customer service interactions pertains to how the company handles claims and customer inquiries, which is also not part of underwriting. Thus, the correct choice accurately represents the specific purpose of an underwriting audit.