Underwriting Arrangement Task

An Underwriting Arrangement Task is a financing task to create an underwriting contract (that accepts financial loss for liability arising in case of damage or financial loss).

Context:
- It can range from being a Human-Performed Underwriting Task to being an Automated Underwriting Task (performed by an underwriting system).
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Example(s):
- Loan Approval.
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Counter-Example(s):
- a Home Insurance Contract Writing Task.
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See: Insurance Premium, Financial Institution, Financial Risk, Insurance.

References

https://fintechnews.sg/43023/ai/will-ai-trigger-massive-job-losses-in-financial-services/
- QUOTE: ... “In my opinion, there will be winners and there will be losers. In MoneyLion, we write about 100,000 number of loans per week and we have zero human underwriters. We displaced 400 – 500 human jobs and replaced that with 10 data scientists." ...

(Wikipedia, 2019) ⇒ https://en.wikipedia.org/wiki/underwriting Retrieved:2019-11-18.
- Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee. An underwriting arrangement may be created in a number of situations including insurance, issue of securities in a public offering, and bank lending, among others. The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter.
  The name derives from the Lloyd's of London insurance market. Financial bankers, who would accept some of the risk on a given venture (historically a sea voyage with associated risks of shipwreck) in exchange for a premium, would literally write their names under the risk information that was written on a Lloyd's slip created for this purpose. ^[1]