A more thorough explanation:

An underwriter is a financial organization that takes on the risk of another party for a fee. They operate in two main areas: securities offerings and insurance.

In securities offerings, an underwriter helps a company sell its securities (like stocks or bonds) to investors. The underwriter may buy the securities from the company and then sell them to investors, or they may help the company sell the securities directly to investors. The underwriter plays an important role in setting the price of the securities and marketing them to potential buyers. However, if the underwriter doesn't do their due diligence and there are problems with the securities, they can be held responsible for any fraud.

A company wants to sell shares of its stock to raise money. They hire an underwriter to help them with the sale. The underwriter does research on the company and the market to determine the best price for the stock and then sells the shares to investors. If the stock does well, the company makes money and the investors make money. If the stock does poorly, the investors lose money.

In insurance, an underwriter assesses the risk of insuring a person or asset and offers to take on that risk in exchange for a fee (the insurance premium). The underwriter looks at factors like the person's health or the asset's value to determine how likely it is that they will need to pay out a claim. If the risk is too high, the underwriter may decline to offer insurance or charge a higher premium.

A person wants to buy health insurance. They fill out an application with information about their health history and current health status. The insurance company's underwriter reviews the application and determines how likely it is that the person will need medical care. Based on that risk assessment, the underwriter offers the person a policy with a certain premium. If the person gets sick or injured, the insurance company will pay for their medical expenses (up to a certain amount).