Underwriter

In finance, an underwriter is a person or institution which underwrites a contract and thus commits to compensate against eligible losses incurred by a contract.

An underwriter can be an insurance or reinsurance company (in the case of insurance policies), a bank (in the case of loans or mortgages), or a broker (in the case of securities).

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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