As an insurance executive, you know that unexpected events can happen at any time. From natural disasters to cyber attacks, your clients rely on you to protect them from financial losses. But have you considered the impact of a global outage on your clients' businesses? The recent PayPal outage is a reminder that even the most reliable systems can fail. In this guide, we’ll show you how to prepare for a global outage and protect your clients from financial losses.

Step 1: Assess the Risk

The first step in preparing for a global outage is to assess the risk. Consider the impact of a global outage on your clients' businesses. How much revenue would they lose if they couldn’t process transactions for two hours? What if the outage lasted for a day or a week? Use real-world examples like the recent PayPal outage to illustrate the potential impact.

Step 2: Develop a Contingency Plan

Once you’ve assessed the risk, it’s time to develop a contingency plan. Identify the critical systems and processes that your clients rely on and develop a plan to keep them operational during a global outage. This may include backup systems, redundant infrastructure, and alternative payment methods. Make sure your clients are aware of the contingency plan and know what to do in the event of a global outage.

Step 3: Consider Parametric Insurance

Parametric insurance is a type of insurance that pays out when a specific event occurs, such as a global outage. Unlike traditional insurance, which requires proof of loss, parametric insurance uses real-time data to trigger payouts. This can help your clients recover quickly from a global outage and minimize their financial losses. Consider offering parametric insurance as part of your clients' insurance portfolio.

Step 4: Test Your Plan

Once you’ve developed a contingency plan, it’s important to test it. Conduct regular drills to ensure that your clients' critical systems and processes are operational during a global outage. Identify any weaknesses in the plan and make adjustments as needed. Testing your plan will help you identify and address any issues before a real-world event occurs.

Step 5: Partner with Riskwolf

Partnering with Riskwolf can help you prepare for a global outage and protect your clients from financial losses. Riskwolf enables insurers to build and operate parametric insurance at scale using unique real-time data and dynamic risk modeling. With Riskwolf, you can turn real-time data into insurance and provide your clients with the protection they need in the event of a global outage.

In conclusion, a global outage can have a significant impact on your clients' businesses. By assessing the risk, developing a contingency plan, considering parametric insurance, testing your plan, and partnering with Riskwolf, you can prepare for a global outage and protect your clients from financial losses. Don’t wait until it’s too late. Start preparing today.

Read more about the recent PayPal global outage here.