Parametrix Launches Performance Guarantee

The latest new product from Parametrix;

Parametrix, the leading provider of digital business interruption risk solutions, has launched a new type of performance guarantee, backed by parametric insurance. The insurance guarantees contractual performance obligations made by large enterprises for the uninterrupted delivery of their platform or service. Unlike traditional performance assurances, payouts are triggered automatically when an insured system interruption
occurs.

Performance guarantees backed by parametric insurance provide enterprises with the financial safety needed to deepen trust in technology adoption, gain a competitive advantage, and unlock upfront payments from clients. This guarantee can take the form of a Service Level Agreement (SLA), ensuring compensation for unmet uptime commitments, or a performance warranty, covering financial losses from service disruptions. Securing these obligations with insurance enables businesses to enhance reliability and reinforce client confidence.

By focusing on the performance outcome rather than a specific peril, it offers a streamlined alternative to traditional policies like property, cyber, and E&O insurance. This enables enterprises to meet contractual performance obligations more cost-effectively, while simplifying their risk
management strategies.

Parametrix developed this new solution in response to multiple requests from enterprises for a product that builds trust in technology among clients and markets. The parametric insurance behind it, underwritten at Lloyd’s of London, enables companies to safeguard their financial
stability and protect clients’ interests.

A standout application is its use by digital infrastructure service providers that offer SLAs to enterprise clients. In the event of a performance breach, the guarantee can offer clients quick reimbursement for losses defined under the SLA, delivering financial certainty and encouraging
greater adoption of specific cloud-based solutions.