Like my colleague Anthony O'Donnell mentioned in Editor's Note for this week's I&T newsletter, "a great wave of water is washing over" parts of the Midwestern United States. Here's the evidence:
And while Anthony -- and no doubt some insurers -- can appreciate the metaphorical significance of the floods there, all insurers should be able to grasp the more tangible lessons that these floods and other recent natural disasters have provided - that things can go wrong, very wrong, and that when they do, it is imperative to have an up-to-date disaster recovery or business continuity plan in place.
Business continuity planning (BCP) has always been something of a priority for insurers, but I've seen a renewed focus of the topic over the past few months. Just last week, I spoke to executives at Hastings Mutual based in Hastings, Mich., a town that lost power for over 17 hours on June 8, following a nasty storm. The regional insurer, however, managed to provide uninterrupted customer service thanks to disaster recovery plan that leveraged a 500 KW power generator.
Last month, I spoke with The Hartford's Keven Busque and Michael O'Connor on their recent BCP efforts, which has included placing a data center in Colorado-far away from the large carrier's local data center in Simsbury, Conn.