Global AIG will collaborate with Israeli Parametrix: The companies will offer AIG cyber insurance clients a parametric solution for insurance coverage for cloud outages. Parametrix’s collaboration with AIG joins the collaboration with Menora Mivtachim.
Parametric insurance is an innovative model of insurance, which pays for pre-agreed damage upon the occurrence of an event that was also pre-defined, and without dependence on actual proof of damage. In this case, the trigger is based on a formula weighing the duration of the cloud service outage and the accompanying potential financial impact. Covered events include outages in cloud infrastructures, SaaS platforms, and other cloud-based technology services, subject to policy terms.
The coverage relies on Parametrix’s monitoring system which tracks more than 750 data centers around the world and over 9,000 software and technology providers, data used both for underwriting and for verifying the outage event in real time.
The coverage includes a waiting period of only two hours, no monetary deductible after the waiting period, transparent and pre-defined triggers in the policy, an expedited process for claim evaluation and payment, and the option to manage the cyber coverage and the cloud outages coverage under one policy.
The background for the launch, as stated, is a continuous increase in organizational dependence on the cloud. According to Synergy Research Group, global spending on cloud infrastructure services reached 129 billion dollars in the first quarter of 2026 – an increase of 35% compared to the corresponding period, the highest growth rate since 2021.
“As businesses invest more in cloud-based solutions and rely on them to serve their clients and manage critical operations, even a short outage can cause significant operational and financial impacts,” said Tracy Grella, Global Head of Cyber Underwriting at AIG. According to her, the solution is designed to allow organizations faster access to funds during a disruption, and to complement their existing risk management and insurance arrangements.
Sharon Haran, Chief Commercial Officer of Parametrix stated: “In the current environment, insurance companies and brokers are increasingly looking for ways to provide additional value and innovation to insureds. The combination of technology and parametric structures makes it possible to provide protection against a major operational risk involved in cloud infrastructure adoption, in a simple and efficient manner.”
The solution is currently available in the United States only, as an endorsement to the policy for eligible cyber clients of AIG.
Parametrix operates as a Managing General Agent (MGA) and holds Coverholder status at Lloyd’s, and its policies are backed by global insurers rated A and above.
