Digital business interruption solutions provider Parametrix has revealed that it has paid claims to customers affected by the Amazon Web Services (AWS) outage on October 20, 2025, allowing affected businesses to recover quickly.
On Monday, October 20, the AWS platform experienced an outage that originated in its largest cloud region and was divided into two distinct phases. The first broke core services such as EC2, Lambda, and API Gateway, while the second affected autoscaling and new instance creation. This two-stage structure makes outages particularly complex, with impacts that vary depending on an organization’s architecture and reliance on dynamic infrastructure scaling.
Thousands of companies were affected, with impacts ranging from a complete disruption of operations for companies that rely on AWS to a temporary loss of functionality at popular websites for Internet users.
Parametrix told Artemis on Oct. 22 that the outage could cost technology and internet services worldwide billions of dollars in lost opportunity and downtime and could trigger some cyber insurance policies, but it was not severe enough to be considered a catastrophic event.
Parametrix provided a clear, data-driven breakdown of the failure to its insurance partners within hours of the outage ending. Affected customers were quickly identified and their exposure levels estimated. This real-time transparency ensures all stakeholders have full situational awareness and confidence in the measured financial impact of outages.
Parametrix notifies brokers of affected client policies within 24 hours, allowing them to immediately distribute loss statement requests to claimants. Once loss acknowledgment is returned to Parametrix, claim payments will begin within two weeks, ensuring rapid liquidity and business continuity.
“At Parametrix, everything starts with our customers,” said Ori Cohen, Chief Operating Officer of Parametrix. “When an outage occurs, they shouldn’t have to wait for answers or compensation. We work hand-in-hand with insurers and brokers to provide complete transparency from the moment an incident begins. Our parametric model ensures customers have the funds they need to recover quickly and confidently.”
On October 24, 2025, CyberCube estimated preliminary losses from the AWS outage to range from $38 million to $581 million. This comes after the company released a Security Incident Report (SIR) for the incident, which estimated the potential impact on reinsurance/insurance to be moderate.
