AIG launches parametric cloud outage insurance with Parametrix
Global insurer AIG has expanded its cyber offering with a new parametric cloud outage insurance product developed in partnership with Parametrix, a provider of digital infrastructure insurance solutions.
According to the announcement, this solution provides clients with an additional layer of cyber insurance protection designed to help them recover faster from business interruption losses caused by cloud service outages and provider downtime. These disruptions can widely affect operations, customer transactions, and access to critical business applications.
AIG’s new Parametric Cloud Outage Solution triggers are based on a predefined formula that considers cloud service downtime and the associated potential financial impact. The coverage extends to events affecting cloud infrastructure, software-as-a-service platforms, or any other cloud-based technology services, subject to the policy terms and conditions.
Key features of the insurer’s new product include a short two-hour waiting period with no subsequent monetary retention. It also offers transparent, predefined policy triggers and a rapid claims assessment and payout process.
Tracie Grella, Global Chief Underwriting Officer of Cyber Risk Insurance at AIG, commented that 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.
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She added that AIG’s Parametric Cloud Outage Solution is designed to give organizations faster access to funds when disruptions occur, helping them respond with greater confidence and certainty while complementing their broader risk management and insurance programs.
The solution, developed in partnership with Parametrix, uses a parametric formula backed by Parametrix’s proprietary monitoring of more than 750 data centers globally and tracking over 9,000 software and other technology providers. This infrastructure monitoring is intended to ensure the triggers are based on verifiable data rather than subjective assessments.
AIG also noted that spending on cloud infrastructure services has increased steadily among businesses of all sizes. According to Cooperation Research Group, global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, a notable increase of 35% from the prior year, marking the highest growth rate seen since 2021.
Sharon Haran, Chief Commercial Officer at Parametrix, said the company’s Cloud Outage Solution creates an opportunity for carriers and brokers to bring additional value and innovation to insureds. She noted that leveraging technology and parametric structures delivers relevant protection for a growing operational risk in a simple, scalable, and economically viable way.
Policyholders can manage both cyber and cloud outage coverage under a single unified insurance policy. The product is currently available in the United States as an endorsement for eligible AIG cyber clients.
