CAT Questions | CAT Paragraph Completion Questions

CAT Verbal Ability | CAT Para Completion
× CAT Questions

CAT Verbal
Sentence Rearrangement Sentence Correction Sentence Elimination Reading Comprehension Critical Reasoning Word Usage Para Summary Text Completion
CAT Quantitative Aptitude
HCF and LCM Factors Remainders Factorials Digits Ratios,Mixtures;Averages Percents; Profits; SICI Speed & Time; Races Logarithms and Exponents Pipes,Cisterns; Work,Time Set Theory Geometry Coordinate Geometry Mensuration Linear & Quadratic Equations Functions Inequalities Polynomials Progressions Permutation Probability
CAT LR DI
DI LR: Bar Graphs DI LR: Pie Charts DI LR: Multiple Graphs DI LR: Word Problems DI LR: Line Graphs DI LR: Sequencing DI LR: Grid Puzzles DI LR: Math Puzzles DI LR: Visualization DI LR: Other Patterns DI LR: CAT 2017 Cet DI LR: CAT 2017 Rural Survey DI LR: CAT 2017 Happiness DI LR: CAT 2017 Airlines DI LR: CAT 2017 Travel Route DI LR: CAT 2017 Food Delivery DI LR: CAT 2017 Square Layout DI LR: CAT 2017 Team Project DI LR: CAT 2017 Assets DI LR: CAT 2017 Pizza DI LR: CAT 2017 Electives DI LR: CAT 2017 Chess DI LR: CAT 2017 Dorms DI LR: CAT 2017 Tea DI LR: CAT 2017 Friends DI LR: CAT 2017 Security Scan

CAT Online Coaching
CAT Question MenuCAT Questions

The question is from CAT Paragraph Completion. CAT exam will have 1~2 questions from Paragraph Completion. Solve CAT Questions from Paragraph Completion to get more practice and 2IIMs CAT questions bank provides you with CAT questions from Para Completion that can help you gear for CAT Exam.

Question 2: The better behaviour 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 behaviour; 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.

  1. 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.
  2. 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.
  3. 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.
  4. The uncertainty that underpins the need for insurance is now shrinking thanks to better insights into individual risks.

2IIM : Best Online CAT Coaching


2IIM's Crash Course CAT 2019
Introductory price @ 7500
Till Oct 7
CAT Online Coaching


Best CAT Coaching in Chennai


CAT Coaching in Chennai - CAT 2020
Starts Sat, October 5th, 2019


Explanatory Answer

Method of solving this CAT Question from Paragraph Completion:

The main point of this paragraph is that technology is producing some threats to the insurance industry, and that tech companies could be the biggest winners in this.

Starting off by mentioning the threats, the author has declared that “yet the biggest winners could be tech companies” and, in justifying why so, he talks of how insurance is using technology to change behaviour to reduce payouts.

Consider option A. This talks of how data available to individuals and firms is helping them assess risk better. It doesn’t carry forward the thought about helicopter parenting from the penultimate line of the paragraph.

Option B talks of how smart devices are helping improve lives and lifestyles. This substantiates the threat of “better behaviour resulting from smart devices” that the author refers to while starting the paragraph. It doesn’t conclude the paragraph.

Option D is ruled out as it talks of reducing uncertainty due to better insights into risks. This is the basic premise on which this paragraph is based, but does not conclude the given paragraph.

Option C talks of “this sort of relationship” and why the tech companies are better placed to win business based on trust. This provides the reasoning for why the author thinks tech companies are the biggest winners, so this is the correct concluding line.

The question is " Choose the Sentence that completes the Paragraph "

Hence, the answer is Sentence C

Choice C is the correct answer.

 


CAT Questions | CAT Quantitative Aptitude

CAT Questions | CAT DILR

CAT Questions | Verbal Ability for CAT


Where is 2IIM located?

2IIM Online CAT Coaching
A Fermat Education Initiative,
10-C, Kalinga Colony, Bobbili Raja Salai
K.K.Nagar, Chennai. India. Pin - 600 078

How to reach 2IIM?

Phone: (91) 44 4505 8484
Mobile: (91) 99626 48484
WhatsApp: WhatsApp Now
Email: prep@2iim.com