What is the main responsibility of a company's underwriting unit?

The main responsibility of a company's underwriting unit is risk selection. Underwriting is a critical function in the insurance industry where the underwriters assess the risk associated with insuring a person or asset. This process involves evaluating various factors such as the applicant's health history, lifestyle, occupation, and other relevant information to determine the likelihood of a claim being made in the future.

By assessing risk accurately, underwriters make informed decisions about whether to provide coverage and under what terms. This not only helps in setting appropriate premiums but also in ensuring that the insurance company remains financially stable. A key aspect of risk selection is to maintain a balanced portfolio of policies, which ultimately contributes to the insurer's profitability and sustainability in the long run.

While financial reporting, claims processing, and policy marketing are essential functions within an insurance company, they do not directly relate to the core responsibility of assessing and selecting risks for underwriting. Financial reporting involves documenting the company’s financial status, claims processing pertains to handling and settling policyholder claims, and policy marketing focuses on promoting and selling insurance products. Each of these areas plays an important role in an insurance company's operations but is distinct from the underwriting function of risk selection.