Parametrix, the leading provider of digital business interruption risk analytics and solutions, announces the structuring, issue, and placement of
Cumulus Re II. This second, larger cloud outage catastrophe bond attracted a greater number of investors to provide sponsor Hannover Re with $20 million worth of retrocessional protection for 2025-6 against the accumulation of losses caused by a sustained cloud-outage event.
Cumulus Re was not drawn down in its first year.
The enlarged transaction shows how comprehensive cloud monitoring and loss modeling by Parametrix continues to build confidence in systemic cyber risk assessment. Parametrix has tracked and audited more than 2,600 historical cloud outage events, and has collected more than 260 billion cloud performance and availability data points. This dataset provides a global view into the performance and availability of the three largest public cloud service providers, Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
To structure and price Cumulus Re, Parametrix leveraged its extensive dataset to model Hannover Re’s underlying risk portfolio. Parametrix Analytics, the company’s dedicated analytics arm, serves as the calculation agent for the bond. This year, bondholders will gain exclusive access to a dedicated dashboard, providing a real-time view of the status of relevant cloud regions, enhancing visibility and confidence in the performance of this emerging risk.
“We have shown again that portfolio accumulation of cloud outage losses is a risk that can be tamed,” said Sharon Haran, Managing Director of Parametrix Analytics. “We are pleased to have worked with Hannover Re to get this second, larger bond over the line, and to have delivered a tool which gives bond buyers a real-time understanding of the digital performance they have covered.”
Henning Ludolphs, Managing Director, Retrocession & Capital Markets at Hannover Re, said: “It is satisfying to see a successful risk transfer experiment from 2024 transformed into a larger, routine transaction in 2025. I am grateful to Parametrix, whose expertise and technology have
made possible this advance in 21st-century technology risk transfer.”
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