Parametrix, a provider of cloud monitoring, modeling and insurance services, has issued its third and largest cloud outage catastrophe bond, Cumulus Re III, attracting more investors than its predecessor and providing sponsor Hannover Re with $35 million in retrocession protection in 2026-27.
The parametric bond, which our sister publication Artemis first reported on March 9, provides 12 months of protection against the accumulation of losses from cloud outage events.
Coverage is triggered by ongoing outages affecting one of the three major public cloud service providers (Amazon Web Services, Microsoft Azure, or Google Cloud Platform) in designated primary regions of the United States and the European Union.
The areas are divided into three tiers based on potential risk, with separate payment formulas for each tier, according to Parametrix.
For more details about Cumulus Re III, please see the Artemis Trading Directory, which is designed to serve as a one-stop resource for cat bond and insurance-linked securities (ILS) trading information.
Sharon Haran, Managing Director at Parametrix Analytics, commented: “The second half of 2025 saw multiple significant cloud outages. Each of the three major providers was in at least one of the key cloud regions, highlighting the potential for catastrophic cloud outages.
“While remote, it is possible. We are pleased to see investors extending support to cover tail risk, which allows shorter outage risks to be covered.”
Dirk Heuer, Head of Group Protection at Hannover Re, added: “We are proud to be working together to develop solutions to address these rapidly evolving risk types. Now in its third year since the first Cumulus Re bond came to market, we are confident that the transfer of risk to capital markets will continue to attract additional capacity to the industry.”
