Parametrix creates parametric (claim-free) insurance for SaaS, PaaS and IaaS downtime such as cloud outages, network crashes, and platform failures. We protect you from external risks so you can focus on your core business activities.
Our goal is to hedge downtime risk that is out of your control. Any tech-dependent business lives and breaths uptime, and pays a heavy price for every minute of downtime.
Today businesses rely on third-party technologies such as cloud computing, web applications, and other platforms. These out of the box solutions are affordable, scalable, and help you focus on your core business. Despite all the advantages, their availability is out of your control. It’s a matter of time until the next downtime occurs and you’ll be held responsible and carry the losses.
Downtime losses include direct revenue losses, recovery expenses, lack of productivity, and customer compensation all of which can add up to a significant amount of financial loss. The first step towards mitigating against cloud risks is recognizing that they are real, quantifying them financially and taking cost-effective measures to mitigate risks when possible, and insuring the rest.
We have created a simple insurance coverage that you can rely on. When the unexpected catastrophic downtime strikes, you’ll get cash to recover after the event and get back to business as fast as possible.
There are inherent risks in trusting a third party with your business infrastructure and it more than makes sense to mitigate against those risks in any way that you can. The first step towards mitigating against cloud risks is recognizing that they are real, quantifying them financially and providing downtime insurance against those risks should the worst occur and this is how downtime insurance began, with your financial protection and downtime risks in mind.
Parametrix creates innovative instant-settlement business interruption insurance policies focused on external service downtime. We cover IT infrastructure downtime for cloud-computing, web hosting, applications, SaaS, ISP, and more.
Our policies are parametric, meaning it involves a predefined payment amount that is transferred to you once specific thresholds are met. This means there is no claims settlement process, and compensation is paid quickly to the catastrophic event. Compared to traditional insurance, our policies cut down claims costs that include loss adjustment processes, forensic and legal, investigations, and other costs. We also agree on a set payout, providing risk certainty which lowers premium costs. This is called parametric insurance.
We monitor the business’ systems externally, and once a service goes down, our policies provide compensation needed for business continuity. This allows companies to hedge their external risks, secure their revenue streams, release SLA reserves, and concentrate on their core business activities.
Downtime Insurance Today:
Today’s emerging catastrophic risk is downtime. Downtime risk is difficult for the traditional insurance mechanism to handle, as the true financial loss is very difficult to establish and even more difficult to prove. Existing policies have downtime exclusions, and/or long waiting periods. When an insured event occurs a disproportionately high proportion of premium goes to risk assessment and claims adjustment expenses. Our parametric coverage has an objective payout formula so that more of the premium goes to covering the risk rather than risk assessments and expensive claims processes. This allows many customers access to protection than have previously been insured for tech risks.
Third-party service providers are protected by some form of cyber insurance that covers their exposures and not yours. Our policies complement your SLAs (Service Level Agreement) so that in a catastrophic event, you can get back up fast.
Here is how it works:
Our customers choose a coverage amount, by calculating the expected cost of downtime for the business and agreeing on terms (such as waiting period, limits) during onboarding. If the specific downtime event happens, the payout is determined by the amount of coverage you chose ahead of time and the duration of the event. Unlike in traditional insurance policies, the payout does not depend on the insurer’s assessment of loss.
Third party downtime is an objective event your business has no control over. We monitor these service providers 24/7 and provide you with real-time updates about the status of your service. If an insured downtime event occurs, we notify you immediately and keep track of the event.
Our policy provides a payout immediately following the occurrence of a downtime event. Payouts are not linked to specific damages, as long as the covered event happened. There are hardly restrictions on how the customer uses the money and can be used on unforeseen costs right away. Pre-agreed payout eliminates the hassle of a traditional claims process and creates a quick and far more transparent process.
We believe that insurance should work as fast as our clients operate. To create insurance that is transparent, simple, fast and that a business can rely on at the moment of truth, we have developed unique technologies that help us to accurately underwrite, trigger compensations in real time and manage insurance exposure.
Our monitoring systems monitor the availability and performance of our customers’ services, detect failures and downtime to the millisecond level on an external platform, without the need to install any software on your systems. We leverage actuarial and data science expertise, with precise aggregation management calculations allowing us to protect your business in the best way possible.
This data is constantly used to analyze and assess downtime risk for each service provider and each component in every location worldwide, to score and differentiate between them.
Our fast-growing team comes from diverse backgrounds that include insurance, cloud, cyber, and data science expertise, as well as enterprise risk management. Solving complex technological problems is in our DNA, and downtime is a problem we’ve all faced first-hand. We have designed an insurance solution for the fastest growing risk for businesses today. We work together to build and design protection for 21st-century businesses.