ELEMENT, the Berlin-based insurtech, announced a partnership with managing general agent, Parametrix Insurance, launching parametric cloud outage insurance for companies in Germany.
The product is designed to cover financial losses due to downtime of third-party IT and cloud infrastructure providers.
Parametrix developed this unique insurance solution based on its proprietary monitoring technology that analyzes the global performance and availability of cloud service providers’ down to the millisecond level. The highly advanced parametric system ensures an accurate and precise overview of risk accumulation and concentration across different IT-services and regions.
Also, the monitoring system detects insured events in real time and triggers compensation with waiting periods as short as only one hour. This new insurance solution in the field of cyber and tech-related insurance is an innovative answer for companies to financial losses due to cloud outages.
ELEMENT acts as risk carrier and is responsible for all claims settlement. The product is reinsured by a leading reinsurer with a Standard & Poor’s “AA-” rating which is present on all continents.
Currently, the downtime insurance is available for companies that have a registered office in Germany and can be bought directly on Parametrix’s website or via leading insurance brokers.
“After a successful launch in the U.S., for us the partnership with ELEMENT opens the possibility to become active in Europe – one of the biggest insurance markets in the world. A product like ours does not exist in the European market, but with the changes due to the digital transformation most businesses will need an insurance cover for downtime events in case of cloud-based outages,” said Sharon Haran, vice president Europe of Parametrix. “We are confident that the product will have a successful launch and attract attention from many companies.”
Eric Schuh, deputy CEO and chief operating officer of ELEMENT, commented: “The parametric downtime insurance solution is not only a first-of-its-kind, but it will also set new standards in the market. Together we will bring this solution to several European countries and expand ELEMENT’s business operations to new levels.”
The new downtime insurance shows that parametric solutions will play a key role in the future of the insurance industry, said ELEMENT.
Policyholders will benefit from the parametric nature of the product, including minimal waiting periods, fast pay-outs, complete transparency of insurance terms, and the possibility to insure a previously uninsurable or almost uninsurable risk, the company continued.
Information on the product follows:
- The product covers all financial losses (e.g., revenues, service level agreement (SLA) liabilities, etc.), caused by the cloud services outage event
- All monitoring services are provided by Parametrix
- The total and hourly sum insured is tailored to the specific financial risk associated with an outage event
About Parametrix and ELEMENT
Parametrix Insurance, a licensed MGA in the U.S. and Germany, provides cloud downtime insurance solutions, ensuring that companies with mission critical services in the cloud can quickly recover financially from downtime events. Based on the data generated by its monitoring technology, Parametrix provides parametric policies with fast payouts, short waiting periods, no usage restrictions, and hassle-free processes. The company is backed by some of the biggest insurers and reinsurers including certain underwriters at Lloyd’s of London. Parametrix offers its insurance products in the U.S., Europe, and Japan through its offices in New York, Tel Aviv, London, and Düsseldorf.
ELEMENT Insurance AG is Germany’s only 100% cloud-based insurtech and holds a license from the German Federal Financial Supervisory Authority (BaFin) as a primary insurer for property/casualty insurance. ELEMENT can therefore operate as a risk carrier in all EU countries and is a completely independent insurance company – without any restrictions due to a group affiliation.
ELEMENT has the capabilities to create P/C solutions along the entire B2B2X insurance value chain, including claims settlement.
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