Definition of Underwrite
Quick Meaning of Underwrite
When a bank or insurance company agrees to back a loan or insurance policy. They take on the financial risk.
Detailed Definition of Underwrite
To sign and accept financial liability or risk; to provide financial backing for a venture; to guarantee coverage in insurance.
How to Pronounce Underwrite
Stress pattern: ooO (3-syllable word).
Tip: UN-der-RITE. Three syllables. Stress the last syllable RITE: un-der-RITE. The first two syllables are unstressed. 'Rite' rhymes with 'write'.
Watch out: Learners often stress the first or second syllable instead of the last. Always stress RITE at the end.
Origin and Etymology of Underwrite
Compound: 'under' (beneath, supporting) + 'write' (to sign). Originally meant to sign one's name under a document. Entered finance in the 17th century with insurance markets.
How to Use Underwrite in a Sentence
Each example shows “underwrite” with a CEFR level so learners can pick examples that match their fluency.
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“The insurance company agreed to underwrite the new policy.”
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“Banks underwrite mortgages after verifying borrower qualifications.”
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“Investment firms underwrite stock offerings to raise company capital.”
Synonyms and Antonyms of Underwrite
Common Synonyms for Underwrite
Smart Synonyms for Underwrite — When to Use Each
- assume financial liability
- Emphasizes acceptance of risk and responsibility
- provide backing for
- Highlights financial support and guarantee
- guarantee
- Includes both risk evaluation and commitment
Common Collocations with Underwrite
These phrases pair with “underwrite” in everyday English:
- underwrite a loan
- underwrite insurance
- underwrite a bond
- underwriting process
- underwritten by
Common Mistakes When Using Underwrite
Even fluent speakers slip up with “underwrite”. Here’s how to avoid the most common errors:
- ✗ Wrong: The insurance company will underwrite to the new policy.
- ✓ Correct: The insurance company will underwrite the new policy.
- Why: Use 'underwrite' directly with the object, not 'underwrite to'.
- ✗ Wrong: The bank underwrote the loan yesterday.
- ✓ Correct: The bank underwrote the loan yesterday. (PAST SIMPLE - IRREGULAR)
- Why: Irregular verb: 'wrote' not 'writed'. Past is 'underwrote'.
- ✗ Wrong: They have underwrite the mortgage already.
- ✓ Correct: They have underwritten the mortgage already.
- Why: Perfect tense uses past participle 'underwritten' not 'underwrite'.
Other Forms of Underwrite
- Verb: underwrite
Frequently Asked Questions About Underwrite
What is the meaning of "Underwrite"?
When a bank or insurance company agrees to back a loan or insurance policy. They take on the financial risk.
How do you pronounce "Underwrite"?
The IPA is /ˌʌndərˈraɪt/. UN-der-RITE. Three syllables. Stress the last syllable RITE: un-der-RITE. The first two syllables are unstressed. 'Rite' rhymes with 'write'.
What part of speech is "Underwrite"?
"Underwrite" is a verb at C1 level (Common European Framework).
What are synonyms for "Underwrite"?
Common synonyms include guarantee, assume liability, back financially.
How do you use "Underwrite" in a sentence?
For example: "The insurance company agreed to underwrite the new policy."