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Underwriting is the process by which an insurer determines whether or not to accept a case and if so, on what terms it will offer coverage to a prospective insured. The main purpose of underwriting is to ensure that the premiums charged correspond closely with the risk that each applicant represents. Whilst life insurance underwriting is concerned primarily with mortality, Health Insurance underwriting is concerned primarily with morbidity which is the incidence of injury, sickness or failure of health.

Generally, the factors that affect a risk can be broadly classified as medical and non-medical. Medical underwriting of an application for Health Insurance requires consideration of both the medical history and current physical condition of the proposed insured to determine on what basis insurance can be offered or declined. Underwriters evaluate a risk primarily by estimating the probable influence of current impairments and previous medical histories on future claims. For instance, signs of cognitive impairments indicate that an applicant is a poor risk for Long Term Care Insurance.