I. Read the passage given below. I. Since its creation in the 17th Century, insures have amassed policies in each class of risk they cover. Thanks to technology, insurers now have access to more information about the risks that individuals run. Car insurers have begun to set premiums based on how actual drivers behave, with “telematic” tracking devices to show how often they speed or slam on the brakes. II. Analysts at Morgan Stanley, a bank, predict that damage to insured homes will fall by 40-60% if smart sensors are installed to monitor, say, frayed electrical wiring. Some health insures provide digital fitness- bands to track policy holders’ vital signs – and give discounts if they lead a healthier life. But the data can only go so far. Even the safest driver can be hit by a falling tree: people in connected homes still fall off ladders. But the potential gains from smart insurance are large. III. First, giving people better insights into how they are managing risk should help them change their behavior for the better. Progressive, an American car insurer, tells customers who use its trackers where they tend to drive unsafely; they crash less often as a result. Second, pricing will become keener for consumers. The insurance industry made $338 billion in profits last year. More accurate risk assessment should result in lower premiums for many policyholders. Third, insurers should be able to spot fraud more easily, by using data to verify claims. IV. But, two worries stand out. One is a fear that insures will go from being with to ones that watch your every move. The other, thornier problem is that insurers will cherry-pick the good risks, leaving some people without a safety net or to be taken care of by the state. Forgone privacy is the price the insured pay receiving personalized pricing. Many people are indeed willing to share the data, but individuals should always have to opt in to do so. Some worry that this safeguard may not be enough: the financial costs of not sharing data may be so great that people have no real choice over whether to sign up. The second concern is the worry that more precise underwriting will create a class of uninsurable people, selected out of insurers' businesses because they are too high a risk. (382 words) Based on your understanding of the passage, answer any six out of the eight questions by choosing the correct option. Q11. Which of the following will be said about the insurance industry?

Dear Student
Option C.


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