Which of the following can help an insurer better assess risk exposure?

Utilizing advanced data analytics tools allows insurers to analyze large sets of data to identify patterns and trends that can provide insights into risk exposure. By leveraging data analytics, insurers can assess historical claims data, evaluate the risk associated with specific demographics or geographic locations, and predict future risks based on existing information. This process enhances decision-making, improves underwriting accuracy, and ultimately helps insurers to price their products more effectively and tailor coverage options to meet their clients' unique risk profiles.

In contrast, limiting the types of insurance offered does not provide a comprehensive view of risk exposure; it may restrict an insurer’s ability to diversify and manage risks effectively. Increased marketing to attract more clients focuses on client acquisition rather than on understanding risk assessment. Establishing a broader range of coverage options can be beneficial; however, without accurate data analysis, it may lead to underpricing or overpricing, which can ultimately affect the insurer's profitability and risk management strategies.