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📋 '''Business continuity plan''' is a documented framework that an insurance organization develops to ensure it can sustain critical functions — such as [[Definition:Claims management | claims handling]], [[Definition:Underwriting | underwriting]], and [[Definition:Policy administration | policy servicing]] — when faced with unexpected disruptions ranging from natural disasters to technology failures. While the term is used across many industries, in insurance it carries particular regulatory weight: [[Definition:Insurance regulator | regulators]] and [[Definition:Rating agency | rating agencies]] routinely evaluate whether carriers have credible, tested plans in place as part of broader [[Definition:Enterprise risk management (ERM) | enterprise risk management]] assessments.

🔧 A well-constructed plan identifies the organization's most time-sensitive processes, maps dependencies on people, technology, and [[Definition:Third-party administrator (TPA) | third-party vendors]], and prescribes recovery procedures with defined time objectives. For an insurer, this means specifying how [[Definition:Claim | claims]] will continue to be adjudicated if a primary processing center goes offline, how [[Definition:Policyholder | policyholders]] will reach support teams, and how [[Definition:Reinsurance | reinsurance]] reporting obligations will be met under degraded conditions. The plan also assigns roles to a crisis-management team, establishes communication protocols for internal staff and external stakeholders, and sets testing schedules — tabletop exercises, simulations, and full-scale drills — to validate that documented procedures actually work under pressure.

🌐 Having a business continuity plan is no longer a best-practice aspiration; it is effectively a licensing and partnership prerequisite. [[Definition:Lloyd's of London | Lloyd's]] managing agents must demonstrate continuity planning as part of market oversight, and many [[Definition:Delegated underwriting authority (DUA) | delegated authority]] agreements require [[Definition:Coverholder | coverholders]] to maintain and periodically certify their plans. Following the operational lessons of the COVID-19 pandemic and the rise of [[Definition:Cyber risk | cyber threats]], insurers are also integrating continuity planning into their own [[Definition:Cyber insurance | cyber insurance]] underwriting — using the presence or absence of a robust plan as a factor when pricing and accepting commercial risks.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Business continuity]]
* [[Definition:Business continuity plan (BCP)]]
* [[Definition:Disaster recovery]]
* [[Definition:Enterprise risk management (ERM)]]
* [[Definition:Operational risk]]
* [[Definition:Cyber risk]]
{{Div col end}}

Definition:Business continuity plan - Revision history

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