How to Handle a Network Outage: Tips for Insurance Executives
As an insurance executive, you know that unexpected events can happen at any time. One such event is a network outage, which can cause app and internet banking problems for banks and credit unions. Recently, a network outage at Data Action (DA) caused problems for at least 17 “challenger banks,” including NAB-owned ubank, Beyond Bank, Defence Bank, and People’s Choice. The outage left customers unable to access their accounts and caused issues with Osko transfers.
As an insurance executive, it’s important to be prepared for such events. Here are some tips on how to handle a network outage:
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Have a Business Continuity Plan in Place: A business continuity plan is a set of procedures and policies that help businesses recover from a disaster or disruption. It’s important to have a plan in place that outlines how your business will continue to operate during a network outage.
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Communicate with Customers: During a network outage, it’s important to keep your customers informed. Let them know what’s happening, how long the outage is expected to last, and what steps you’re taking to resolve the issue.
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Identify the Root Cause: It’s important to identify the root cause of the network outage so that you can take steps to prevent it from happening again in the future. Work with your IT team and third-party providers to determine the cause of the outage.
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Consider Parametric Insurance: Parametric insurance is a type of insurance that pays out when a specific event occurs, such as a network outage. Consider working with Riskwolf to develop parametric insurance for your business. With Riskwolf, you can turn real-time data into insurance, enabling you to build and operate parametric insurance at scale.
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Test Your Systems: Regularly testing your systems can help you identify potential issues before they become major problems. Consider conducting regular tests to ensure that your systems are working properly and that you’re prepared for a network outage.
In conclusion, a network outage can be a major disruption for banks and credit unions. As an insurance executive, it’s important to be prepared for such events by having a business continuity plan in place, communicating with customers, identifying the root cause, considering parametric insurance, and testing your systems regularly. With these tips, you can help ensure that your business is prepared for a network outage and can continue to operate smoothly.
Source: Ubank, other Australian “challenger” banks, hit by lengthy DA outage