American International Group, Inc. (AIG), a global insurer and reinsurer, has launched a new Parametric Cloud Outage Solution in partnership with Parametrix, a provider of digital business interruption solutions, offering additional cyber protection for clients experiencing business interruption losses from cloud service outages and cloud provider downtime.
The solution’s parametric formula is backed by Parametrix’s proprietary monitoring of over 750 data centres globally and tracking over 9,000 software and other technology providers.
The parametric coverage’s triggers are based on a predefined formula that evaluates cloud service downtime and the associated potential financial impact.
AIG explained that covered events may include outages affecting cloud infrastructure, software-as-a-service platforms, or other cloud-based technology services, subject to policy terms and conditions.
The solution is currently available in the United States as an endorsement for eligible AIG cyber clients. The re/insurer explained that this coverage is a direct result of the increased enterprise spending on cloud infrastructure services across businesses.
Some of the key features of AIG’s parametric solution include a shorter waiting period of about two hours, no monetary retention following the waiting period, rapid claims assessment and payout process, and the ability to manage cyber and cloud outage coverage through a single insurance policy.
According to Synergy Research Group, global enterprise spending on cloud infrastructure services increased by 35% year over year, the highest growth rate since 2021, hitting USD 129 billion in the first quarter of 2026.
Tracie Grella, Global Chief Underwriting Officer, Cyber Risk Insurance, 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.
“AIG’s Parametric Cloud Outage Solution is designed to give organisations 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, Parametrix, added, “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.”
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