On July 19th, 2021, Google experienced a brief outage that caused disruption to several other services, such as YouTube, Gmail, and Google Meet. It’s understood that Virgin Media and BT internet users have also been affected. Outage site Downdetector registered thousands of reports for issues with YouTube and Google. Affected services are largely back online, though some users are still experiencing issues. People flocked to social media to see whether others were having problems with accessing Google services.

This outage may seem like a minor inconvenience to the average person, but for internet service providers (ISPs), it can have serious consequences. When Google goes down, it’s not just their services that are affected. ISPs rely on Google’s infrastructure to provide their own services, and an outage can lead to widespread disruptions for their customers.

Imagine a scenario where an ISP experiences an outage due to a Google service disruption. This outage affects their customers' ability to work from home, attend virtual meetings, and access important information. The ISP may face a flood of customer complaints and even legal action if the outage lasts for an extended period.

This is where parametric insurance comes in. Parametric insurance is a type of insurance that pays out when a specific event occurs, such as a power outage or a natural disaster. Unlike traditional insurance, which requires a lengthy claims process, parametric insurance pays out automatically based on pre-defined triggers.

For ISPs, parametric insurance can provide much-needed protection against service disruptions caused by Google outages. By setting up triggers based on Google’s server status, ISPs can receive automatic payouts when their services are affected by a Google outage. This can help them cover the costs of customer refunds, legal fees, and other expenses associated with service disruptions.

At Riskwolf, we specialize in helping insurance builders develop parametric insurance solutions for a wide range of industries, including ISPs. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

In conclusion, the recent Google outage serves as a reminder of the importance of parametric insurance for ISPs. By taking proactive steps to protect themselves against service disruptions, ISPs can ensure that their customers remain satisfied and their businesses remain profitable. If you’re an insurance executive looking to develop parametric insurance solutions for the ISP industry, get in touch with Riskwolf today.

Source: The Sun