Downtime can be very expensive for insurance brands. Lost business, extra diagnosis and repair costs to systems, checking and resetting passwords across various departments. All time and money. Most insurers, brokers and MGA are in the Cloud now, so this report on Cloud Outages is worth noting,
Cloud service interruption events among the “big three” cloud providers happened more often and lasted much longer in 2023 than the year prior, according to Cloud Outage Risk Report 2023, the latest annual cloud outage report from Parametrix, the leading provider of cloud monitoring, modeling, and insurance services.
The total number of events of all severities observed by the firm’s proprietary Parametrix Cloud Monitoring System (PCMS) increased by 43% to 638 during the year. The number of “Critical” interruptions – the most severe events – increased by 38%, and their total duration rose from 133.5
hours to 205.3 hours. Six of these critical event outages lasted more than ten hours. Interruptions of MS Azure services accounted for the bulk of downtime, while Amazon Web Services proved the most reliable of the big three.
The majority of events by number and duration happened in North America, but major Critical interruptions also occurred in European, Asian, and Rest of World regions. Monitoring by Parametrix is incredibly granular, alerting to downtime for specific types of services, such as “compute” or “storage”, at any given moment. PCMS is therefore able to report on the total duration of lost functionality of different service types during an outage. Aggregate unavailability of all service types increased 54% in 2023, for a total of 205 hours, during the 40 Critical interruptions. Compute
functions were offline for 134.6 hours, the longest of any service type.
“This year’s data reveals stark truths: severe cloud outage events were more numerous in 2023, and they lasted much longer,” said Yonatan Hatzor, co-founder and CEO of Parametrix. “This highlights the clear need for cloud-dependent companies to take effective risk-transfer measures, and for insurers to manage the potential downtime disasters which may be accumulating undetected against their balance
sheets. That’s what we’re here for.”
Read the report here.
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