Study 9:Emerging Issues And Trends In Insurance Flashcards
What is cyber crime?
A) The risk of having a company’s computer system hacked
B) Not having firewalls in place to protect a computer system
C) An intent to inflict harm or loss on another person
D) A criminal offence involving a computer as the object of the crime
D) A criminal offence involving a computer as the object of the crime
Cyber crime is a criminal offence involving a computer as the object of the crime, or the tool used to commit a material component of the offence. Computers have been used as weapons to commit crimes and as storage devices to conceal criminal evidence or activities. Alternatively, they can be the object of a crime itself.
What from can criminal copyright infringement take?
A) Theft of intellectual property
B) Attacks to critical infrastructure
C) Theft of customer data
D) Identity theft
A) Theft of intellectual property
Theft of intellectual property can take the form of criminal copyright infringement as a result of selling counterfeit software.
What is identity theft?
A) Hacking into a corporate computer system
B) Using someone else’s personal information to commit fraud
C) Falsifying information on a claim
D) Theft of intellectual property
B) Using someone else’s personal information to commit fraud
A crime in which someone wrongfully obtains and uses another person’s personal data to commit fraud. Personal data such as social insurance numbers, bank account numbers, ad other valuable identifying data can be used for profit and to the detriment of the victim.
What is distributed denial-of-service (DDos) attack?
A) Cyber crime
B) Bot scam
C) Multiple compromised systems flood the bandwidth or resources of a targeted system, usually one or more web servers.
D) Identity theft
C) Multiple compromised systems flood the bandwidth or resources of a targeted system, usually one or more web serves.
When multiple compromised systems flood the bandwidth, usually targeting one or more web servers. These types of attacks cause significant challenges for targeted organizations because multiple machines can generate more attack traffic than one machine, multiple attack machines are harder to turn off than one attack machine, and the behaviour of each attack machine can be stealthier, making it harder to track down and shut down.
What is an epidemic?
A) Disease that spreads rapidly
B) Disease with no vaccine
C) An above-average but limited incidence of an infectious disease
D) A localized spread of disease
C) An above-average but limited incidence of an infectious disease
An epidemic is an above-average but limited incidence of an infectious disease such as influenza, cholera, and severe acute respiratory syndrome (SARS). Any disorder in which infectious viruses or bacteria are easily transmitted can cause an epidemic.
What is an endemic?
A) The presence of an infectious disease in a certain region at all times for a significant percentage of the population
B) Disease that spreads rapidly throughout many countries
C) Disease that is highly transmissible among a very small group of people
D) Highly infectious disease that is spread over a wide area
A) The presence of an infectious disease in a certain region at all times for a significant percentage of the population
An endemic is the presence of an infectious disease in a certain region at l times for a significant percentage of the population. Malaria, for example, i endemic in parts of Africa and Latin America.
What is a pandemic?
A) Disease that spreads rapidly throughout a country
B) Disease with no vaccine that spreads rapidly among a small group of people
C) The spread of a highly infectious disease over a wide geographical area, such as a large part of a continent
D) The presence of an infectious disease in a certain region at all times for a significant percentage of the population.
C) The spread of a highly infectious disease over a wide geographical area, such as a large part of a continent
A pandemic refers to the spread of a highly infectious disease over a wide geographical area, such as a large part of a continent. It may even signify global transmission that affects an exceptionally high proportion of the population.
What does operational risk relate to?
A) Loss of profit
B) Loss of economic or market growth
C) Loss of senior management
D) Loss of people available for work for prolonged periods of time
D) Loss of people available for work for prolonged periods of time.
Operational risk related to the loss of people available for work for prolonged periods of time. It is anticipated that high absenteeism will be caused by widespread infection rates. Management policies for supporting quarantined staff should be developed.
What is blockchain?
A) A computer network system that allows for the rapid execution of claims
B) A technology platform that enables distributed ledger technology (DLT)
C) A self-executing contract
D) A chain of command
B) Technology platform that enables distributed ledger technology (DLT)
Blockchain is a technology platform that enables distributed ledger technology. The distributed ledger contains transactions that record and track the transfer of assets between two or more parties.
What is a smart contract?
A) A contract written by exceptional lawyers
B) A contract that is easily understood
C) A self-executing contract with the terms of the agreement between the buyer and seller being directly written into lines of code
D) A contract that can be explained in plain language accurately
C) A self-executing contract with the terms of the agreement between the buyer and seller being directly written into lines of code
A smart contract is a self-executing contract with the terms of the agreement between the buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
Narrative: Identify ways to manage IT cyber risks. (5 marks)
Manage IT risks:
1) Building awareness among leaders of cyber risk
2) Business leaders should make decisions about IT issues, not technical experts, including:
2. 1) IT spending
2. 2) Prioritization of projects
2. 3) Setting of security expectations
Narrative: Outline the operational risks if there is a pandemic. (5 marks)
Operational risks - pandemic
1) Operational risks relate to the loss of people available for work for prolonged periods of time
2) Widespread infection rates will likely cause high absenteeism
3) Management policies for supporting quarantined staff should be developed
4) There would likely be an increase in claims
5) Possibly many of the people affected might not be insured
Narrative: State five insurance-specific uses for blockchain. (5 marks)
Insurance-specific she’s for blockchain (any five of the following)
1) Customer identity
2) Reinsurance
3) Real-Time Insurance
4) Underwriting and claims processes
5) Micro insurance
6) Parametric insurance
7) Insurance fraud
