An underwriter is any party that evaluates and assumes another party's risk for a fee, which often takes the form of a commission, premium, spread, or interest. Agents and brokers represent both consumers and insurance companies, while underwriters work for insurance companies. Underwriters play a critical role in many industries in the financial world, including the mortgage industry, insurance industry, equity markets, and some common types of debt security trading. An individual in the position of a lead underwriter is sometimes called a book runner. Modern-day underwriters play a variety of roles depending on the industry they are working in. In general, underwriters are tasked with determining the level of the risk involved in a transaction or other kind of business decision. Risk is the likelihood that an outcome or investment's actual gains will differ from an expected outcome or return.

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