IndiGo Airlines, one of India’s largest airlines, recently experienced a system-wide slowdown that disrupted its operations across the country. The incident led to longer check-in times, delays in ticket bookings, and extended queues at airports, causing frustration and inconvenience for passengers nationwide. As insurance executives, what can we learn from this incident to better prepare for similar situations in the future?

Here are some common statements made by insurance executives during a crisis, and what they should do instead:

1. “We didn’t see this coming.” - While it’s impossible to predict every crisis, insurance executives should always be prepared for the unexpected. Conducting regular risk assessments and having contingency plans in place can help mitigate the impact of a crisis.

2. “We’ll handle it internally.” - While it’s important to have internal processes in place, seeking external help from experts in crisis management and risk assessment can provide valuable insights and support during a crisis.

3. “We’ll deal with the consequences later.” - Delaying action can lead to further damage and increased costs. Insurance executives should act quickly and decisively to minimize the impact of a crisis.

4. “We don’t need parametric insurance.” - Parametric insurance, which pays out based on predefined triggers such as weather conditions or system outages, can provide faster and more efficient payouts during a crisis. Insurance executives should consider incorporating parametric insurance into their risk management strategies.

In the case of IndiGo’s system outage, the airline’s response was to reassure passengers that its airport staff was actively working to manage the situation. However, insurance executives should take a more proactive approach to crisis management, including:

1. Conducting regular risk assessments to identify potential crises and develop contingency plans.

2. Seeking external help from experts in crisis management and risk assessment.

3. Acting quickly and decisively to minimize the impact of a crisis.

4. Incorporating parametric insurance into their risk management strategies.

At Riskwolf, we enable insurers to build and operate parametric insurance at scale using unique real-time data and dynamic risk modeling. With Riskwolf, insurance executives can turn real-time data into insurance and be better prepared for unexpected crises like IndiGo’s system outage.

To learn more about IndiGo’s system outage, read the original article here. To learn more about how Riskwolf can help insurance executives prepare for crises, get in touch with us today.