AIG launches parametric cloud outage insurance working with Parametrix

Global insurer AIG has expanded its cyber offering with the launch of a new parametric cloud outage solution developed in partnership with Parametrix, a provider of digital infrastructure insurance solutions.

According to the announcement, the solution will provide clients with an additional layer of cyber insurance protection that allows them to recover faster from business interruption losses resulting from cloud service outages and cloud provider downtime.

These events can widely disrupt operations, customer transactions, and access to critical business applications.

Moreover, AIG’s new Parametric Cloud Outage Solution triggers are based on a predefined formula that considers cloud service downtime and the associated potential financial impact.

The solution covers events like outages affecting cloud infrastructure, software-as-a-service platforms, or any other cloud-based technology services, subject to policy terms and conditions.

Key features of the insurer’s new Parametric Cloud Outage Solution include a short two-hour waiting period with no subsequent monetary retention, transparent and predefined policy triggers, and a rapid claims assessment and payout process.

AIG’s new solution also allows policyholders to manage both cyber and cloud outage coverage under a single unified insurance policy.

As mentioned, AIG’s new parametric cloud outage solution was developed in partnership with Parametrix, with the parametric formula backed by Parametrix’s proprietary monitoring of more than 750 data centers globally and tracking over 9,000 software and other technology providers.

AIG also emphasised that spending on cloud infrastructure services has increased steadily among businesses of all sizes.

According to Synergy Research Group, global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, a notable increase of 35% from the prior year, marking the highest growth rate seen since 2021.

AIG’s Parametric Cloud Outage Solution is currently available in the United States as an endorsement for eligible AIG cyber clients.

Tracie Grella, Global Chief Underwriting Officer of Cyber Risk Insurance at AIG, commented: “As businesses increasingly invest and rely on cloud-based solutions to better serve customers and run critical operations, even a short outage can have significant operational and financial impacts.”

Adding: “AIG’s Parametric Cloud Outage Solution is designed to give organizations faster access to funds when disruptions occur, helping them respond with greater confidence and certainty while complementing their broader risk management and insurance programs.”

Sharon Haran, Chief Commercial Officer at Parametrix, said: “In today’s environment, carriers and brokers are increasingly looking for ways to bring additional value and innovation to insureds.

“Our Cloud Outage Solution creates an opportunity to do exactly that, and we are delighted to work with AIG to bring this solution to their insureds. Leveraging technology and parametric structures, this solution delivers relevant protection for a growing operational risk in a simple, scalable, and economically viable way.”