New cyber solution provides faster payouts for business interruption caused by cloud service disruptions

AIG and Parametrix have launched a parametric cloud outage solution designed to help businesses recover losses from cloud service outages and technology provider downtime.

The solution, available in the US as an endorsement for eligible AIG cyber clients, combines AIG’s cyber insurance coverage with Parametrix’s proprietary monitoring technology. The system monitors more than 750 data centers globally and tracks disruptions across more than 9,000 software and technology providers.

Rather than relying on a traditional claims assessment, the coverage uses a predefined parametric formula to evaluate cloud service downtime and its potential financial impact. Covered events can include outages affecting cloud infrastructure, software-as-a-service platforms and other cloud-based technology services, subject to policy terms and conditions.

The solution is designed to provide a faster response following an outage. It has a waiting period of about two hours, after which there is no monetary retention, along with a streamlined claims assessment and payout process.

AIG said the coverage also allows cyber and cloud outage protection to be managed under a single policy.

The launch comes as businesses become increasingly dependent on cloud infrastructure for critical operations. According to Synergy Research Group, global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, up 35% year over year and representing the highest growth rate since 2021.

For insurers and brokers, the increasing concentration of business operations on cloud infrastructure is creating a growing exposure to service interruptions that can generate significant financial losses even without a conventional cyberattack.

“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,” said Tracie Grella, global chief underwriting officer, Cyber Risk Insurance, at AIG.

She said the parametric solution is intended to give organizations faster access to funds following disruptions, complementing their broader insurance and risk management programs.

Parametrix chief commercial officer Sharon Haran said the partnership reflects growing demand from carriers and brokers for insurance products that can address emerging operational risks.

The solution illustrates the broader expansion of parametric insurance into cyber and technology-related exposures. By using predefined triggers and external data to determine payouts, parametric structures can potentially reduce the time between an insured event and recovery funding.

For AIG, the offering adds a specialized cloud outage protection layer to its cyber portfolio as reliance on third-party technology infrastructure continues to increase.