Cloud Risk Modeling

Empowering (re)insurers to seamlessly quantify, effectively manage, and transfer cloud risks.
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The technology we need to create the products you need.

What's your exposure to cloud outage risk?

Parametrix Cloud Risk Modeling, using cloud analytics and proprietary data captured from our robust cloud monitoring system, allows you to pinpoint your exposure to cloud outage risk in a way that's never been done before.
Employing external and non-intrusive techniques, the proprietary technology tracks 1 billion data points each week from 297 data centers around the world.
This real-time data paired with insured exposure data and years of historical cloud outage data is what makes Parametrix cloud modeling unique and unparalleled for understanding and modeling cloud outages.

We continuously track and analyze the dependencies between different Saas, PaaS and IaaS platforms, collecting granular data with detection capabilities down to the millisecond.

The proprietary technology is the first of its kind, enabling Parametrix to define the first cloud outage index that provides uniform measures and statistics across all the cloud service providers.
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Parametrix helps (re)insurers make data-driven underwriting, portfolio management, and risk transfer decisions.

Analyze Cloud
Exposure

Identify a portfolio’s cloud infrastructure and quantify your accumulation risk.

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Define Cloud
RDSs

Define realistic disaster scenarios and estimate the financial loss from an event.

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Structure Cloud
Risk Solutions

Customized risk transfer solutions, optimizing your risk strategy.

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Cloud Monitoring
& Alerts

Proactive management with continuous, portfolio- specific outage monitoring and alerts.

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Key benefits of cloud risk modeling

Cloud infrastructure detection

Detects the cloud infrastructure of every underlying insured, including redundancy. Enabling a better understanding into cloud behavior on a more granular level with a complete, 360 view into your portfolios cloud footprint, as well as the ability to:
  • Analyze a real or synthetic portfolio(s)
  • Map the main accumulation and aggregation points
  • Quantify the potential financial and insurance loss per aggregation point
Parametrix also tracks and analyzes the performance, availability, and interdependencies of other third-party IT services such as content delivery networks (CDNs), payment gateways, CRMs, and other widely used SaaS platforms.

Realistic cloud outage
scenarios

Leverage proprietary cloud monitoring technology along with historical, real-time, and insured exposure data to define all relevant and realistic cloud outage RDSs based on factors such as:
  • Cloud service provider
  • Region
  • Duration
The return period is set according to stochastic models based on years of attritional data for cloud outages.

From risk analysis to risk transfer

The insights gained from Parametrix cloud risk modeling can be applied to structured risk transfer, both parametric and non-parametric, using an informed risk strategy to determine the risk retention, mitigation, and transfer.
Transactions are event-based and can be tailored to factors such as:
  • Cloud service provider
  • Cloud region(s)
  • Geographical regions(s)
  • Different waiting periods
  • Varying payout schedules

Cloud monitoring & alerts

Parametrix's proprietary cloud monitoring technology tracks the availability and performance of your portfolios' aggregation points so you know which cloud regions are the most stable and what your level of exposure is for each point.

The alert systems sends real-time notifications of potential loss that is triggered from a specific event.

Key features of parametrix cloud monitoring & alerts system include:

  • Downtime data repository-
    The only data repository for cloud downtime combining proprietary directly monitored data and externally collected sources
  • Standardized language across all service providers-
    Parametrix has developed a language and method to record service provider data that translates across all providers and service provider types (Cloud, CDN, CRM, etc)
  • Highlights downtime frequency & severity-
    Index brings to light the amount of outages and degradation that the cloud experiences almost on a daily basis

For more on cloud risk modeling &
risk transfer solutions

Explore Parametrix published white papers on our cutting-edge cloud modeling methodology and innovative risk transfer solutions.
Cloud Outage and the Fortune 500
Cloud Outage and the Fortune 500: A Parametrix impact analysis

This case study provides a multi-billion-dollar benchmark for the impact of catastrophic cloud outage events. Parametrix is able to:

  • a model of cloud outage behavior,
  • profile the cloud infrastructure of companies based on an external scan of their tech stack, and
  • estimate the impact of cloud outages on specific companies based on their cloud architecture and trading sector
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ILS White Paper: Cloud-in-a-Box
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This paper from Parametrix focuses on parametric cloud outage ILS structures and includes the following:

  • The global cloud services market
  • Demand for cloud otuage risk transfer
  • Characteristics of parametric cloud downtime transactions
  • Definitions, models, and monitoring
  • Key benefits to ILS investors
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