Which statement about insurer's big data is true?

Which statement about insurer's big data is true?

• A. Contains no data
• B. Contains both internal and external data
• C. Contains only internal data
• D. Contains only external data

Answer: (B)

Insurer big data comes from combining internal and external sources to create a richer view of risk. Internal data from the insurer’s own systems—policy details, claims history, exposures, premiums, renewal activity, and underwriting notes—tells you what has happened within the company. External data adds information from outside sources—weather and catastrophe data, telematics and IoT signals, third‑party risk scores, social signals, GIS data, and public records—providing context about factors that influence risk beyond the insurer’s books. The strength of big data in underwriting, pricing, fraud detection, and claims handling comes from mixing these internal and external datasets to build more accurate models and insights. That’s why the true statement is that insurer big data contains both internal and external data; treating it as only internal or only external would miss the comprehensive picture that big data aims to provide.

Insurer big data comes from combining internal and external sources to create a richer view of risk. Internal data from the insurer’s own systems—policy details, claims history, exposures, premiums, renewal activity, and underwriting notes—tells you what has happened within the company. External data adds information from outside sources—weather and catastrophe data, telematics and IoT signals, third‑party risk scores, social signals, GIS data, and public records—providing context about factors that influence risk beyond the insurer’s books. The strength of big data in underwriting, pricing, fraud detection, and claims handling comes from mixing these internal and external datasets to build more accurate models and insights. That’s why the true statement is that insurer big data contains both internal and external data; treating it as only internal or only external would miss the comprehensive picture that big data aims to provide.