Parametrix, Hannover Re partner on cloud outage ILS cover

Parametrix Insurance Services LLC on Monday said it had teamed with Hannover Re SE to launch Cumulus Re, a privately placed insurance-linked security providing cover for losses arising from sustained cloud outage.

Issued by Hannover Re’s wholly owned Bermuda-based Kaith Re Ltd., Cumulus Re provides Hannover Re with $13.75 million of incremental retrocession protection “in the event that the delivery of specific cloud services in certain U.S. cloud regions by one or more named cloud service providers are interrupted in excess of a specified waiting period,” Parametrix said in a statement.

Privately issued, the “cat bond lite” has been placed with private investors, according to the statement.

Henning Ludolphs, managing director, retrocession and capital markets at Hannover Re, said in the statement that cloud outage is one of the main risks within cyber insurance and reinsurance and the involvement of capital markets is “crucial” to satisfy capacity needs in the mid- to long-term.

Parametrix also Monday announced the launch of Parametrix Analytics, designed to help insurers and insurers quantify and manage, and transfer cloud risks.

The analytics use Parametrix’s cloud monitoring services to help inform policyholders of variables including aggregations and accumulations, Parametrix said in a statement.