Type : MCQ

Intructions :

Directions: A paragraph is given below from which the last sentence has been deleted. From the given options, choose the one that completes the paragraph in the most appropriate way.

Question Statement :

The better behavior resulting from smart devices is just one threat to the insurance industry. Conventional risk pools (for home or car insurance, for example) are shrinking as preventable accidents decline, leaving the slow-footed giants of the industry at risk. Business is instead moving to digital-native insurers, many of which are offering low premiums to those willing to collect and share their data. Yet the biggest winners could be tech companies rather than the firms that now dominate the industry. Insurance is increasingly reliant on the use of technology to change behavior; firms act as helicopter parents to policyholders, warning of impending harm - slow down; reduce your sugar intake; call the plumber - the better to reduce unnecessary payouts. _____________________________

The growing mountain of personal data available to individuals and, crucially, to firms is giving those with the necessary processing power the ability to distinguish between low-risk and high-risk individuals.
Cheap sensors and the tsunami of data they generate can improve our lives; blackboxes in cars can tell us how to drive more carefully and wearable devices will nudge us toward healthier lifestyles.
Yet this sort of relationship relies on trust, and the Googles and Apples of the world, on which consumers rely day-by-day and hour-by-hour, may be best placed to win this business.
The uncertainty that underpins the need for insurance is now shrinking thanks to better insights into individual risks.