DEFINITION of 'Associate In Underwriting - AU'
Person with qualifications to evaluate risk for insurance companies. Insurance is protection against future financial loss from injury, illness, property damage or liability for the losses of others. Insurance underwriters review applications for insurance coverage. They evaluate the potential risk, and accept, reject or modify the policy according to law or company standards. This professional designation is awarded by the Insurance Institute of America (IIA) upon successful completion of three national exams. The program leading to this designation is designed for agency and company underwriters, field representatives and account managers; this requires a working knowledge of insurance principles and coverages.
BREAKING DOWN 'Associate In Underwriting - AU'
The AU designation program complements commercial underwriting skills. The term 'underwriter' derives from financial bankers, who would accept some of the risk on a given venture, historically a sea voyage. In exchange for a premium, they would write their names under the risk information which was written on a slip created for this purpose.