In the world of blockchain, downtime can be a major setback. This was the case for Sui, a layer-1 blockchain that recently experienced a network outage, causing a 7% drop in its price despite the broader bull market. The outage was caused by a bug in transaction scheduling logic that caused validators to crash, according to a statement by the Sui team.

For insurance executives, this outage should serve as a wake-up call. Just like blockchain networks, insurance systems can also experience downtime, leading to significant financial losses for policyholders. This is where parametric insurance comes in.

Parametric insurance is a type of insurance that pays out when a predefined event occurs, such as a natural disaster or a network outage. Unlike traditional insurance, which relies on claims processing and manual assessments, parametric insurance uses real-time data to trigger payouts automatically.

In the case of the Sui network outage, parametric insurance could have helped investors and traders mitigate their losses. By setting up a parametric insurance policy that triggers a payout when the Sui network experiences downtime, investors could have protected themselves from financial losses caused by the outage.

But parametric insurance isn’t just useful for blockchain networks. It can also be applied to other industries, such as agriculture, where it can protect farmers from crop losses caused by weather events, or transportation, where it can protect shipping companies from losses caused by delays or cancellations.

At Riskwolf, we specialize in helping insurance companies build and operate parametric insurance at scale. Our unique real-time data and dynamic risk modeling enable insurers to create customized parametric insurance policies that meet the specific needs of their clients.

So if you’re an insurance executive looking to stay ahead of the curve, consider parametric insurance as a way to protect your clients from unexpected events like the Sui network outage. With Riskwolf, you can turn real-time data into insurance and provide your clients with the peace of mind they deserve.

To learn more about how Riskwolf can help you develop parametric insurance for your clients, visit our website at Riskwolf.