Insurance Technology & Digital Applications 5

Question 1

What is 'robotic process automation' (RPA) commonly used for in insurance back-office operations?

Accepted Answer

Automating repetitive tasks like data entry, policy issuance, and billing reconciliation

Answer

RPA bots mimic human keystrokes to perform high-volume, rules-based tasks across legacy systems without costly system integrations.

Question 2

A cyber insurer requires annual penetration testing as a policy condition. What does penetration testing assess?

Accepted Answer

Vulnerabilities in an organization's systems by simulating real-world cyberattacks

Answer

Penetration testing (ethical hacking) identifies exploitable security gaps before malicious actors can take advantage of them.

Question 3

Which term describes an insurer's strategy of embedding insurance products within non-insurance platforms (e.g., at airline checkout)?

Accepted Answer

Embedded insurance

Answer

Embedded insurance integrates coverage seamlessly into a partner's purchase flow, offering relevant protection at the moment of need without redirecting to a separate insurer.

Question 4

What is the primary purpose of an insurance data lake?

Accepted Answer

Centralizing structured and unstructured data from multiple sources for analytics and reporting

Answer

A data lake aggregates raw data from claims, policies, external feeds, and IoT devices, providing a single repository for advanced analytics and AI model training.

Question 5

How does natural language processing (NLP) assist in commercial insurance underwriting?

Accepted Answer

By extracting and summarizing key risk information from lengthy submission documents automatically

Answer

NLP models read unstructured text in broker submissions, loss runs, and financial statements, flagging key risk factors and reducing manual underwriter review time.

Insurance Practice Test

Insurance Practice Test

Insurance Technology & Digital Applications 5