Chapter Preview. This chapter introduces readers to methods of analyzing insurance data. Section 1 begins with a discussion of why the use of data is important in the insurance industry. Yes, this is obvious but we need to make a strong case for it as this is the whole premise of the book. Next, Section 2 provides an overview of the types of data that one encounters. There are many types from which to choose; your first step in the analysis of data is identify a broad class to help direct you to the appropriate tools and techniques. Section 3 gives a general overview of the purposes of analyzing insurance data which is reinforced in the Section 4 case study. Naturally, there is a huge gap between identifying the broad class of variables and what we learn from the data; this gap is covered through the methods and techniques of data analysis covered in the rest of the text.