The latest news from Parametrix for you;
Parametrix, the leading provider of cloud monitoring, modeling, and insurance services, announces the structuring, issue, and placement of Cumulus Re III. This third, larger cloud outage catastrophe bond attracted a greater number of investors than its predecessors to provide sponsor Hannover Re with $35 million worth of retrocessional protection for 2026-7.
The parametric bond provides 12 months of protection against the accumulation of losses arising from a cloud-outage event. It is triggered by a sustained downtime that affects one of the three largest public cloud service providers, Amazon Web Services, Microsoft Azure, or Google Cloud Platform, in specified major US and EU provider regions. These have been categorized into three tiers based on their potential exposure, with a different payout formula for each tier.
Reflecting strong investor demand, the bond was upsized to $35 million from $20 million for the previous issue. Cumulus Re was not triggered during its first two years.
To act as structuring agent for the bond, Parametrix draws on its unparalleled downtime dataset, which includes thousands of actual outage events and billions of graded-availability data points. Its proprietary, continuous cloud availability monitoring system supports its role as
calculation agent for the bond issue.
“Multiple significant cloud outages occurred during the second half of 2025. Each of the big three providers had at least one in an important cloud region, which has underlined the potential for a catastrophic cloud outage,” said Sharon Haran, Managing Director of Parametrix
Analytics. “It’s remote, but it’s possible. We are delighted to see the expanded support from investors to cover the tail risk, which makes shorter outage risks insurable down the line.”
Dirk Heuer, Head of Group Protection at Hannover Re, said: “We are proud to collaborate on solutions addressing these rapidly developing risk types. Now in the third year since the first Cumulus Re bond was brought to market, we are confident that the risk transfer to capital markets will continue to attract additional capacity to this sector.”
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