What is the process of determining a customer’s eligibility for coverage known as?

The process of determining a customer’s eligibility for coverage is known as underwriting. This is a critical step in the insurance process where the insurer evaluates the risk associated with insuring an individual or entity. During underwriting, insurance companies gather and analyze information about the applicant, including factors such as health history, financial stability, previous claims, and other relevant data.

The primary goal of underwriting is to assess whether the applicant fits the insurer's risk profile and, if so, under what terms they can be insured. This may include deciding on coverage limits, premiums, and specific policy conditions.

In contrast, provisioning generally refers to the act of preparing a service or product for use, and while it may be relevant in other contexts, it does not pertain specifically to assessing eligibility for insurance coverage. Risk assessment, while related to underwriting, focuses more broadly on identifying and evaluating potential risks rather than the specific process of approving coverage for an individual. Policy review typically involves examining existing policies to ensure they still meet the policyholder's needs rather than evaluating a new applicant's eligibility. Thus, underwriting is the most accurate term for the process of determining a customer’s eligibility for coverage in the insurance industry.