👉 Underwrapping is a term used in insurance and financial analysis to describe a situation where an insured's total loss exceeds their deductible. The term refers to the amount of money that must be paid out by the insurer before any additional coverage or benefits are provided, such as health insurance or life insurance. In insurance terms, underwriting refers to the process of determining how much risk a policyholder will bear when applying for a policy. Underwriters use various factors such as the policyholder's age, income