$50m parametric cloud outage cyber cover secured for US retailer by Parametrix

Parametrix, a specialist in parametric cloud downtime cyber insurance and reinsurance protection, has secured a $50 million cover for a US retailer, with the assistance of Aon, Howden and with a range of re/insurers backing the deal.

Parametrix is a managing general agent (MGA) and Lloyd’s coverholder that specialises in providing cyber risk cover against cloud downtime, with its products structured on a parametric basis.

Previously, Parametrix was behind the first cloud outage catastrophe bond, a $13.75 million Cumulus Re (Series 2024-1) transaction that was privately placed using reinsurance firm Hannover Re’s Bermuda transformer Kaith Re Ltd.

While this $50 million deal was larger, it does not appear to be capital markets or ILS fund backed, but it is a strong signal of the potential for larger cloud outage cyber deals, that could in future be securitized.

Parametrix Chief Commercial Officer, Sharon Haran announced that this innovative $50 million cyber insurance cover provides the leading US retail chain client with protection against Amazon Web Services (AWS) outages during its sale season.

Haran explained that Aon designed the policy, while it was backed by a raft of well-known insurance and reinsurance market names.

“I’d like to thank to our partners who supported this placement: Hannover Re, HDI Global Specialty SE, Munich Re Syndicate, Chaucer Group, Tokio Marine Kiln, Apollo ibott 1971, Aspen Insurance Group and Ki Insurance,” Haran said.

Adding that, “Special thanks to David Rees and the Howden team for their swift orchestration of this policy.”

Haran went on to say that, “This achievement underscores our commitment to providing cutting-edge risk management solutions in the digital age.”