https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ABusiness_continuity_plan_%28BCP%29 2026-05-04T18:57:51Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Business_continuity_plan_(BCP)&diff=7334&oldid=prev 2026-03-10T12:48:57Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>📑 &#039;&#039;&#039;Business continuity plan (BCP)&#039;&#039;&#039; is the formalized, documented strategy an [[Definition:Insurance carrier | insurance carrier]], [[Definition:Managing general agent (MGA) | MGA]], or other insurance entity maintains to keep essential operations running when a significant disruption strikes. The abbreviation BCP is standard shorthand across the industry&#039;s compliance, risk-management, and IT departments, appearing in [[Definition:Insurance regulator | regulatory]] filings, audit reports, and vendor due-diligence questionnaires alike. At its core, a BCP translates the broader concept of [[Definition:Business continuity | business continuity]] into actionable procedures, timelines, and accountability structures.<br /> <br /> ⚙️ Developing a BCP begins with a business impact analysis that ranks each operational function — [[Definition:Underwriting | underwriting]], [[Definition:Claims management | claims]], [[Definition:Premium | premium]] collection, [[Definition:Reinsurance | reinsurance]] reporting — by criticality and acceptable downtime. From there, the plan documents recovery strategies: failover to backup systems, alternative work-site arrangements, manual workarounds for automated processes, and escalation paths for decision-making. Insurance-specific considerations include maintaining access to [[Definition:Bordereaux | bordereaux]] data, preserving the integrity of [[Definition:Loss reserve | reserve]] calculations during system outages, and ensuring [[Definition:Regulatory compliance | regulatory]] filing deadlines are still met. Periodic testing — often required annually by frameworks such as the NAIC&#039;s [[Definition:Own risk and solvency assessment (ORSA) | ORSA]] — validates that the plan remains realistic as the organization evolves.<br /> <br /> 🏛️ Regulators, [[Definition:Rating agency | rating agencies]], and trading partners all treat the BCP as a barometer of institutional resilience. A carrier that cannot produce a current, tested BCP may face adverse findings during examinations, downgrades in [[Definition:Financial strength rating | financial strength ratings]], or rejection by [[Definition:Reinsurance | reinsurers]] unwilling to assume risk from operationally fragile cedants. In the [[Definition:Lloyd&#039;s of London | Lloyd&#039;s]] market, managing agents must satisfy continuity-planning standards as part of ongoing market oversight. The growing frequency of [[Definition:Cyber risk | cyber incidents]] and climate-driven [[Definition:Catastrophe | catastrophes]] has elevated the BCP from a back-office compliance artifact to a board-level governance priority.<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Business continuity]]<br /> * [[Definition:Disaster recovery]]<br /> * [[Definition:Enterprise risk management (ERM)]]<br /> * [[Definition:Operational risk]]<br /> * [[Definition:Own risk and solvency assessment (ORSA)]]<br /> * [[Definition:Cyber risk]]<br /> {{Div col end}}</div>

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