BIG DATA ANALYTICS FOR RISK AND
INSURANCE 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
◉ Which one of the following is correct regarding an insurer's big
data? Answer: An insurer's big data consists of both its own internal
data and external data
◉ Data science is especially useful for Answer: Unstructured data
◉ Which one of the following correctly describes a new evolution of
big data, sometimes referred to as big data 2.0 in insurance and risk
management? Answer: Organizations can strategically use data from
the Internet of Things and vehicle telematics
◉ Which one of the following is a way that insurers and risk
managers can use data science to improve their results through
data-driven decision making? Answer: Discovering new
relationships in data
◉ All of the following are fundamental concepts of data science,
EXCEPT: Answer: The data mining project need not provide actions
that lead to better business results in order to be considered
worthwhile
,◉ The descriptive approach is applied Answer: When an insurer or
risk manager has a specific problem
◉ Which one of the following is a data mining technique an insurer
applies when it knows what information it wants to predict?
Answer: Classification
◉ Which one of the following is correct about data science? Answer:
Data science is a new field that arose from the need to link big data
and technology to provide useful information
◉ Which one of the following is a legal and regulatory concern in
obtaining mass information from social media? Answer: Privacy
◉ The important first step in a decision-making model is to Answer:
Define the problem
◉ Data scientists at Grisham Risk and Insurance are working with
underwriting, claims, and other department professionals to design
data mining projects to help generate better business solutions and
decisions. Which one of the following is true regarding this
collaboration at Grisham? Answer: The data scientists will explore
underutilized sources of data, such as social media and social
networks
,◉ Gustav is a claims representative from Forefront Insurance. He is
accessing online weather reports to determine hazardous road
conditions alleged by an injured claimant. These weather reports are
an example of which one of the following types of data? Answer:
External unstructured data
◉ The first step in the data mining process is to Answer: Understand
what a business wants to achieve
◉ Data scientists must be able to Answer: Analyze traditional data
as well as new types
◉ Which one of the following is a fundamental concept of data
science? Answer: The selection of data mining approaches must be
considered in the context in which the results will be applied
◉ A project team at Goshen Mutual has been working on developing
a new product for the personal insurance market. The team is using
geodemographic data to determine which territories would be the
best to introduce the product. Geodemographic data would be
categorized as Answer: Structured external data
◉ The purpose of data analytics for insurers is to Answer: Make
data-driven decisions and strategy
, ◉ The insurance professionals who have traditionally analyzed data
and made predictions based on their analyses are Answer: Actuaries
◉ Reynolds Insurance provides workers compensation insurance
for small to medium sized companies, mostly to its local and
regional manufacturers. For data science to be relevant and useful to
Reynolds, which one of the following types of technology would be
its best investment? Answer: Harnessing the Internet of Things data
to analyze data from wearables such as hardhats and steel-toed
boots
◉ Technology that can particularly assist adjusters in evaluating
claims after catastrophes is Answer: Drones
◉ Tania works in the fraud unit for Greatview Insurance. There is a
claimant who appears to be involved in multiple cases of insurance
fraud. Tania decides to use social media to obtain information that
may be used to develop a profile of the claimant. Tania's use of social
media is an example of which one of the following types of data?
Answer: Unstructured external
◉ Which one of the following is correct regarding data science teams
in insurance and risk management organizations? Answer: Risk
management and insurance professionals can be valuable members
of data science teams
INSURANCE 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
◉ Which one of the following is correct regarding an insurer's big
data? Answer: An insurer's big data consists of both its own internal
data and external data
◉ Data science is especially useful for Answer: Unstructured data
◉ Which one of the following correctly describes a new evolution of
big data, sometimes referred to as big data 2.0 in insurance and risk
management? Answer: Organizations can strategically use data from
the Internet of Things and vehicle telematics
◉ Which one of the following is a way that insurers and risk
managers can use data science to improve their results through
data-driven decision making? Answer: Discovering new
relationships in data
◉ All of the following are fundamental concepts of data science,
EXCEPT: Answer: The data mining project need not provide actions
that lead to better business results in order to be considered
worthwhile
,◉ The descriptive approach is applied Answer: When an insurer or
risk manager has a specific problem
◉ Which one of the following is a data mining technique an insurer
applies when it knows what information it wants to predict?
Answer: Classification
◉ Which one of the following is correct about data science? Answer:
Data science is a new field that arose from the need to link big data
and technology to provide useful information
◉ Which one of the following is a legal and regulatory concern in
obtaining mass information from social media? Answer: Privacy
◉ The important first step in a decision-making model is to Answer:
Define the problem
◉ Data scientists at Grisham Risk and Insurance are working with
underwriting, claims, and other department professionals to design
data mining projects to help generate better business solutions and
decisions. Which one of the following is true regarding this
collaboration at Grisham? Answer: The data scientists will explore
underutilized sources of data, such as social media and social
networks
,◉ Gustav is a claims representative from Forefront Insurance. He is
accessing online weather reports to determine hazardous road
conditions alleged by an injured claimant. These weather reports are
an example of which one of the following types of data? Answer:
External unstructured data
◉ The first step in the data mining process is to Answer: Understand
what a business wants to achieve
◉ Data scientists must be able to Answer: Analyze traditional data
as well as new types
◉ Which one of the following is a fundamental concept of data
science? Answer: The selection of data mining approaches must be
considered in the context in which the results will be applied
◉ A project team at Goshen Mutual has been working on developing
a new product for the personal insurance market. The team is using
geodemographic data to determine which territories would be the
best to introduce the product. Geodemographic data would be
categorized as Answer: Structured external data
◉ The purpose of data analytics for insurers is to Answer: Make
data-driven decisions and strategy
, ◉ The insurance professionals who have traditionally analyzed data
and made predictions based on their analyses are Answer: Actuaries
◉ Reynolds Insurance provides workers compensation insurance
for small to medium sized companies, mostly to its local and
regional manufacturers. For data science to be relevant and useful to
Reynolds, which one of the following types of technology would be
its best investment? Answer: Harnessing the Internet of Things data
to analyze data from wearables such as hardhats and steel-toed
boots
◉ Technology that can particularly assist adjusters in evaluating
claims after catastrophes is Answer: Drones
◉ Tania works in the fraud unit for Greatview Insurance. There is a
claimant who appears to be involved in multiple cases of insurance
fraud. Tania decides to use social media to obtain information that
may be used to develop a profile of the claimant. Tania's use of social
media is an example of which one of the following types of data?
Answer: Unstructured external
◉ Which one of the following is correct regarding data science teams
in insurance and risk management organizations? Answer: Risk
management and insurance professionals can be valuable members
of data science teams
