Parametrix Analytics, the leading provider of cloud risk quantification solutions, has proposed for discussion revisions to Lloyd’s compulsory Realistic Disaster Scenario (RDS) 17.3, “Cloud Cascade”. The firm’s comprehensive analysis of the current RDS and its proposed improvement draws on its extensive observational data about cloud performance and availability. Publication of the paper is intended to engage additional market participants in the conversation.
Based on detailed analysis of historical cloud outage events, Parametrix Analytics suggests that the market adopts a scenario which is more specific about the cloud outage event, the cloud service provider which suffers interruption, and about insureds’ cloud dependencies, redundancies, and risk mitigation measures.
PCMS, the Parametrix Cloud Monitoring System, places Parametrix and its clients at the forefront of cloud risk quantification and modeling. The advanced platform gathers unprecedented amounts of data on cloud performance and availability, enabling much more granular understanding of the risks associated with cloud outages and other interruptions of the digital supply chain.
“We’ve outlined a broad framework for a new, more accurate cloud-outage disaster scenario for Lloyd’s and other cyber insurers,” said Sharon Haran, Chief Commercial Officer of Parametrix. “Since RDS 17.3 was first set, the cloud and its user base have evolved dramatically. In the interim, we’ve gathered and collated a huge amount of data about cloud performance and usage, which has enabled us to develop guidelines for a much more realistic RDS for the risk. I encourage cyber insurers at Lloyd’s and the market’s exposure management community to explore and discuss our proposals, which we believe could result in eased capital allocations for cloud-related catastrophe events.
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About Parametrix Analytics
Parametrix is the leading provider of cloud outage analytics and insurance solutions. We specialize in underwriting parametric insurance for system interruption, helping businesses protect against the costly impacts of downtime. Leveraging proprietary technology, we continuously monitor third-party IT services, gathering granular data on service performance and interruptions. This data enables us to assess risk accurately, provide instant insurance quotations, and streamline claims payments, ensuring our clients receive fast, reliable support when they need it most. Parametrix is a Managing General Agent and Lloyd’s Coverholder whose policies are backed by major A-rated global insurers. The company is based out of New York.
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