BIG DATA ANALYTICS FOR RISK AND
INSURANCE 2026 EXAM PREP STUDY GUIDE
COMPLETE SOLUTIONS
◉ data-driven decision making. Answer: An organizational process
to gather and analyze relevant and verifiable data and then evaluate
the results to guide business strategies.
◉ quantitative. Answer: based on numerical values or other units of
measurement
◉ qualitative. Answer: based on some quality or characteristic
rather than on measured value
◉ structured data. Answer: data organized into databased with
defined fields, including links between databases
◉ telematics. Answer: the use of technological devices to transmit
data via wireless communication and GPS tracking
◉ unstructured data. Answer: data that is not organized into
predetermined formats, such as databases, and often consists of text,
images, or other nontraditional media
, ◉ internal data. Answer: data that is owned by an organization
◉ metadata. Answer: the data about data that provides context for
analyzing transaction facts with efficient structures for grouping
hierarchial information
◉ underwriting expenses. Answer: costs incurred by an insurer for
operations, taxes, fees, and the acquisition of new policies
◉ loss adjustment expense (LAE). Answer: the expense that an
insurer incurs to investigate, defend, and settle claims according to
the terms specified in the insurance policy
◉ allocated loss adjustment expense (ALAE). Answer: The expense
an insurer incurs to investigate, defend, and settle claims that are
associated with a specific claim.
◉ unallocated loss adjustment expense (ULAE). Answer: Loss
adjustment expense that cannot be readily associated with a specific
claim.
◉ salvage. Answer: the process by which an insurer takes possession
of damaged property for which it has paid a total loss and recovers a
portion of the loss payment by selling the damaged property
INSURANCE 2026 EXAM PREP STUDY GUIDE
COMPLETE SOLUTIONS
◉ data-driven decision making. Answer: An organizational process
to gather and analyze relevant and verifiable data and then evaluate
the results to guide business strategies.
◉ quantitative. Answer: based on numerical values or other units of
measurement
◉ qualitative. Answer: based on some quality or characteristic
rather than on measured value
◉ structured data. Answer: data organized into databased with
defined fields, including links between databases
◉ telematics. Answer: the use of technological devices to transmit
data via wireless communication and GPS tracking
◉ unstructured data. Answer: data that is not organized into
predetermined formats, such as databases, and often consists of text,
images, or other nontraditional media
, ◉ internal data. Answer: data that is owned by an organization
◉ metadata. Answer: the data about data that provides context for
analyzing transaction facts with efficient structures for grouping
hierarchial information
◉ underwriting expenses. Answer: costs incurred by an insurer for
operations, taxes, fees, and the acquisition of new policies
◉ loss adjustment expense (LAE). Answer: the expense that an
insurer incurs to investigate, defend, and settle claims according to
the terms specified in the insurance policy
◉ allocated loss adjustment expense (ALAE). Answer: The expense
an insurer incurs to investigate, defend, and settle claims that are
associated with a specific claim.
◉ unallocated loss adjustment expense (ULAE). Answer: Loss
adjustment expense that cannot be readily associated with a specific
claim.
◉ salvage. Answer: the process by which an insurer takes possession
of damaged property for which it has paid a total loss and recovers a
portion of the loss payment by selling the damaged property
