AI Availability Monitoring by Parametrix Enables Holistic Business Interruption Insurance for the Digital Supply Chain

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NEW YORK— February 29, 2024—  Parametrix has expanded its capabilities to include real-time monitoring of the availability of Artificial Intelligence (AI) services. Platforms such as OpenAI’s ChatGPT, Google Gemini, Claud, and others can now be monitored, extending the company’s core cloud monitoring, modeling, and insurance services to this important new digital infrastructure.

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Parametrix, a Lloyd’s coverholder, is now compiling an event database which describes the reliability of the most important AI service platforms. In 2023, for example, Parametrix detected and monitored more than 50 interruption events which affected ChatGPT. Their average duration of 2.5 hours highlights the critical need for comprehensive monitoring and risk-transfer solutions, since the failure of third-party AI services delivered through the digital supply chain often causes tangible business losses. 

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Parametrix can now provide insurers and brokers with the tools necessary to manage and mitigate the risks associated with AI service disruptions. The initiative will enable Parametrix clients to develop more accurate and dynamic risk models, ultimately leading to more resilient and responsive insurance products.

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“We have developed this powerful tool in response to calls from the insurance industry to help them cope with clients’ emerging digital risk concerns,” says Parametrix CEO Jonathan Hatzor. “By stepping into the realm of AI service monitoring, we enable another critical business-risk coverage gap arising from the technology era to be closed.” 

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Hatzor continued: “Companies from multiple sectors are increasingly reliant on third-party AI platforms to power services like chatbots, or to automate processes, tasks, and workflows. Productivity may stop when AI delivery fails, and can be enormously costly when the outage is sustained. This new monitoring capability allows insurers or brokers to create, for example, a parametric Non-Damage Business Interruption product to cover AI outage risk.”

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About Parametrix

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Parametrix, the leading provider of cloud monitoring, modeling, and insurance services, is a Managing General Agent and Lloyd’s Coverholder based out of New York that underwrites parametric insurance against digital supply chain interruption. Parametrix uses proprietary technology to continuously monitor the performance of a variety of third-party IT services across the globe, and to collect granular data on service interruptions. It uses that data to assess risk, provide instant insurance quotations, and to streamline claims payments, which are delivered within days. Parametrix policies are backed by major A-rated global insurers.