What is underwrite? Pronunciation and usage in English

underwrite means . Learn how to pronounce and use underwrite through vivid examples and easy-to-understand exercises.

Definition & pronunciation of underwrite

underwriteverb

/ˌʌndəˈraɪt//ˌʌndərˈraɪt/

Okay, let's break down how to pronounce "underwrite." It's a notoriously tricky word! Here's a breakdown, and I'll give it in a few ways:

1. The Most Common & Recommended Pronunciation (American English):

  • uhn - like the "un" in "under"
  • der - like the "der" in "derby"
  • writ - like "write"
  • -tee - like "tea"

So, it sounds like: uhn-der-writ-tee

2. British English Pronunciation:

  • uhn - like the "un" in "under"
  • der - like the "der" in "derby"
  • writ - like "write"
  • -er - this is the key difference! It's pronounced like “er” in “her,” not like “tea.”

So, it sounds like: uhn-der-writ-er

Tips for sounding right:

  • Stress: The primary stress is on the first syllable ("uhn").
  • "writ" sound: Focus on making your "writ" sound clear and distinct. It’s not a mumbled “w-rit.”
  • The "-tee" or "-er": This is the part that trips most people up. Listen to native speakers to get the hang of it.

Resources to help you hear it:

To help me give you even more targeted advice, could you tell me:

  • Which accent are you interested in? (American, British, or another specific accent?)

Usage and examples with the word underwrite in English

Let's break down how to use the word "underwrite." It's a surprisingly complex word with several distinct meanings, so understanding the context is crucial. Here's a breakdown:

1. Financial Underwriting (Most Common)

  • What it means: In finance, to "underwrite" means to guarantee a loan, investment, or insurance policy. The underwriter takes on the risk that the borrower or applicant won't fulfill their obligations. They’re essentially saying, "We believe this is a good risk, and we're willing to back it."
  • How it’s used:
    • "The investment bank will underwrite the IPO (Initial Public Offering) for the company." (They guarantee the sale of the shares.)
    • "The bank underwrote the mortgage, meaning they guaranteed the lender would receive the full amount even if the borrower defaulted."
    • "Insurance companies underwrite policies to assess risk and set premiums."
  • Key phrases: “to underwrite a loan,” “to underwrite an investment,” “to underwrite an insurance policy.”

2. To Support or Endorse (Figurative Meaning)

  • What it means: More broadly, “to underwrite” can mean to support an idea, opinion, or behavior, often with a degree of approval or enthusiasm, though not necessarily full endorsement. It suggests a degree of backing or enabling.
  • How it’s used:
    • “The media underwrites the values of success and consumerism.” (The media supports these values by promoting them.)
    • "Her family underwrote her decision to pursue her dream, even though it meant moving across the country." (They supported her choice.)
    • "The company's policies underwrite a culture of innovation." (They enable or contribute to a culture of innovation.)
  • **Key difference from “endorse”: ** “Endorse” implies a stronger, more explicit approval. “Underwrite” suggests a more subtle or foundational support.

3. To Write a Guarantee (Older Usage – Less Common Now)

  • What it means: Historically, "underwrite" came from the printing trade. A printer would “underwrite” a book by paying for it to be printed, guaranteeing that it would be published even if it didn't sell well.
  • How it was used: "The publisher underwrote the manuscript, agreeing to pay for its production." (This usage is rarely heard in modern conversation.)

Here's a table summarizing the different meanings:

Meaning Context Example
Financial Loans, Investments, Insurance "The bank underwrote the loan."
Figurative Ideas, Opinions, Behaviors “The media underwrites that success is achieved through hard work.”
Historical Printing “The publisher underwrote the manuscript.”

Tips for Using "Underwrite" Correctly:

  • Consider the context: Pay close attention to whether you’re talking about finance or a more general support/endorsement.
  • It’s a formal word: "Underwrite" is a relatively formal word. In many situations, simpler words like "guarantee," "support," or "approve" would be more natural.
  • Don’t overuse it: It’s a word that can sound a bit stuffy if used too frequently.

Resources for Further Learning:

Would you like me to:

  • Give you more examples of how to use "underwrite" in a specific context (e.g., business, journalism)?
  • Compare "underwrite" with similar words like "guarantee" or "endorse"?

Synonyms for the word underwrite

Practice with vocabulary underwrite

Exercise 1: Fill in the blanks

  1. The investment bank agreed to ________ the upcoming bond issue, providing a crucial guarantee to potential investors.
  2. A consortium of venture capitalists agreed to ________ the ambitious space exploration venture, assuming significant financial risk.
  3. The humanitarian organization appealed for donations to ________ the emergency relief efforts in the disaster-stricken region.
  4. After careful deliberation, the committee chose to ________ the new policy proposal, granting it official approval.

Exercise 2: Choose the correct answer

  1. Which term describes the process where a financial institution guarantees the sale of newly issued securities, thereby assuming the risk if they don't sell? A) Arbitrage B) Underwriting C) Securitization D) Diversification

  2. To ensure the successful launch of their new product line, the company sought partners who could provide a financial guarantee for the initial production costs. Which of the following terms accurately describe such financial arrangements? (Select all that apply) A) Endorse B) Underwrite C) Broker D) Finance

  3. An insurance company's primary role includes assessing risks and taking on liability for potential claims. This core function is known as: A) Adjudicating B) Underwriting C) Reinsurance D) Appraising

  4. The international non-profit organization decided to ________ the humanitarian aid campaign by publicly supporting its goals and encouraging global participation. A) sponsor B) fund C) endorse D) subsidize

  5. Before granting approval for the construction permit, the city planning department will thoroughly ________ the environmental impact assessment report. A) sanction B) review C) authorize D) concede

Exercise 3: Rewrite the sentences

  1. Original: The venture capital firm has pledged to provide financial support for the nascent technology company. Rewrite: The venture capital firm has pledged to ________ the nascent technology company.

  2. Original: Finding someone willing to take on the risk of insuring the experimental drone delivery service proved challenging. Rewrite: Finding a willing ________ for the experimental drone delivery service proved challenging.

  3. Original: The government introduced new policies to offer financial assistance to small businesses affected by the economic downturn. Rewrite: The government introduced new policies to ________ small businesses affected by the economic downturn.

Answer:

Exercise 1: Fill in the blanks

  1. underwrite
  2. underwrite
  3. fund
  4. approve

Exercise 2: Choose the correct answer

  1. B) Underwriting
  2. B) Underwrite, D) Finance
  3. B) Underwriting
  4. C) endorse
  5. B) review

Exercise 3: Rewrite the sentences

  1. The venture capital firm has pledged to underwrite the nascent technology company.
  2. Finding a willing underwriter for the experimental drone delivery service proved challenging.
  3. The government introduced new policies to subsidize small businesses affected by the economic downturn.

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