Underwriting VS Insurance

[rainbow402]

Dear Teacher,

What's the difference between "underwriting" and "insurance" ? Thank you!

[Anglika]

If you take out insurance, you aim to protect yourself against risk by regularly payingmoney to a special company that will provide a fixed amount of money if you are killed or injured or if your home or possessions are damaged, destroyed or stolen.

Insurance companies seek other companies or individuals to underwrite their policies = these will have reimburse the insurance companies for the money that is paid out by the insurance companies on claims.

[rainbow402]

Anglika, thank you for your answer.