On Monday afternoon, China’s NetEase Cloud Music streaming platform suffered a nearly two-hour long service outage due to infrastructure breakdowns. The incident caused a lot of inconvenience to the platform’s users and highlighted the importance of having insurance coverage for such events. As an insurance executive, you can help your clients avoid losses due to infrastructure breakdowns by taking the following steps:

1. Don’t rely solely on traditional insurance policies that cover only physical damage to property. Instead, consider offering parametric insurance that covers losses due to service outages, cyber attacks, and other non-physical events. With parametric insurance, your clients can receive compensation based on predefined triggers, such as the duration of the outage or the number of affected users.

2. Encourage your clients to invest in robust IT infrastructure that can withstand unexpected events. This includes having backup servers, redundant power supplies, and disaster recovery plans in place. By doing so, your clients can minimize the risk of service outages and reduce the impact of any downtime.

3. Provide your clients with risk management advice and training. Many service outages are caused by human error, such as misconfigured servers or incorrect software updates. By educating your clients on best practices for IT management, you can help them avoid costly mistakes and reduce the likelihood of service disruptions.

4. Stay up-to-date with the latest trends and technologies in the insurance industry. Parametric insurance is a relatively new concept that is gaining popularity due to its flexibility and simplicity. By offering this type of coverage, you can differentiate yourself from competitors and provide your clients with innovative solutions that meet their evolving needs.

At Riskwolf, we specialize in helping insurance executives develop and implement parametric insurance solutions. With our unique real-time data and dynamic risk modeling, we enable insurers to build and operate parametric insurance at scale. If you’re interested in learning more about how we can help you and your clients, please get in touch with us today.

Don’t wait until it’s too late. By taking proactive steps to mitigate the risks of infrastructure breakdowns, you can help your clients avoid losses and protect their businesses. Read more about the NetEase Cloud Music outage here.