Underwriting is a term first used in England in the 1600's. Underwriters (insurers) wrote their names at the bottom of proposed insurance contracts covering a ship and its cargo. They indicated in this way their willingness to assume part of the risk. Today, every insurance company has an underwriting department which is important to the success of the company. Underwriting experts must determine the premium rates for various kinds of insurance policies and the amount and degree of risk to be assumed for each policy.