Berlin, 24th of August 2021 – ELEMENT, Germany’s only 100% cloud-based insurance company, is proud to announce a new partnership with US-based Parametrix Insurance – the first on an international level. Together the companies have launched a first-of-its-kind parametric cloud outage insurance, designed to cover financial losses due to downtime of third-party IT and cloud infrastructure providers. Parametrix developed this unique insurance solution based on its proprietary monitoring technology that analyses the global performance and availability of cloud service providers’ down to the millisecond level. The highly advanced parametric system ensures an accurate and precise overview of risk accumulation and concentration across different IT-services and regions. Also, the monitoring system detects insured events in real time and triggers compensation with waiting periods as short as only one hour. This new insurance solution in the field of cyber and tech-related insurance is an innovative answer for companies to financial losses due to cloud outages.
ELEMENT acts as risk carrier and is responsible for all claims settlement. The product is reinsured by a leading reinsurer with a Standard & Poor’s AA- rating which is present on all continents. Currently, the downtime insurance is available for companies that have a registered office in Germany and can be bought directly on Parametrix’s website (www.parametrixinsurance.com) or via leading insurance brokers.
After a successful launch in the US, for us the partnership with ELEMENT opens the possibility to become active in Europe – one of the biggest insurance markets in the world. A product like ours does not exist in the European market, but with the changes due to the digital transformation most businesses will need an insurance cover for downtime events in case of cloud-based outages, says Sharon Haran, VP Europe of Parametrix. We are confident that the product will have a successful launch and attract attention from many companies.Sharon Haran, VP Europe of Parametrix
In Parametrix, we have found a highly innovative and fast-moving partner who shares our vision for the insurance industry and the broader insurance market – completely digital insurance solutions that serve major client needs. The parametric downtime insurance solution is not only a first-of-its-kind, but it will also set new standards in the market. Together we will bring this solution to several European countries and expand ELEMENT’s business operations to new levels.Eric Schuh, Deputy CEO and Chief Operating Officer of ELEMENT
The new downtime insurance impressively shows that parametric solutions will play a key role in the future of the insurance industry. Policy holders will benefit from the parametric nature of the product, including minimal waiting periods, fast pay-outs, complete transparency of insurance terms, and the possibility to now insure a previously un- or hardly insurable risk.
● The product covers all financial losses (e.g., revenues, SLA liabilities, etc.) caused by the cloud services outage event
● All monitoring services are provided by Parametrix – unavailability of a cloud service requires that the cloud service provider is temporarily unable to deliver the promised service to the insured
● The total and hourly sum insured is tailored to the specific financial risk associated with an outage event
ELEMENT Insurance AG is Germany’s only 100% cloud-based InsurTech and holds a license from the German Federal Financial Supervisory Authority (BaFin) as a primary insurer for property and casualty insurance. ELEMENT can therefore operate as a risk carrier in all EU countries and is a completely independent insurance company – without any restrictions due to a group affiliation. ELEMENT is the only digital insurance company in the European market that has the capabilities to create P&C solutions along the entire B2B2X insurance value chain, including claims settlement. The exceptional combination of insurance and technology makes ELEMENT a change leader in the insurance industry.
ELEMENT’s clear vision for digital insurance solutions, supports establish a new industry standard for product innovation and partnerships in the insurance marketplace. As a licensed and independent primary insurer, ELEMENT handles the risk coverage for all products.
With a proprietary modular tech-platform, ELEMENT is a specialist for providing custom-made white-label solutions to partners across all industries. The combination of full-stack insurance and state-of-the-art tech makes ELEMENT a strong, fast, and reliable partner for the digital insurance market of the future.