Actuarial Notes

Exam DISC-RM Practice Question 55

Study guide: Exam DISC-RM

A regional insurer outsources first notice of loss for all its auto claims to a single vendor. After a ransomware attack takes the vendor offline for nine days during a hailstorm, claims pile up and complaints to the regulator rise. Which response would most improve the insurer's resilience to a similar event?

  • A) Buy more business income insurance to replace the profit lost during an outage
  • B) Add penalty clauses to the vendor contract for any future outage
  • C) Stop testing its continuity plan, since the vendor is responsible for the outage
  • D) Add a second vendor and a small in-house intake team as a backup

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