A New View on Cloud Outage RDS
Discussion paper builds on new data and better understanding of cloud behavior to propose a new approach to RDS 17.3, "Cloud Cascade".
As cloud technology rapidly evolves and reliance on cloud services grows, insurers and reinsurers are increasingly exposed to cloud-related risks.
A New View on Cloud Outage RDS analyzes Lloyd’s RDS 17.3 “Cloud Cascade”, offering a more practical and insightful scenario that aligns results with the actual structure of the cloud landscape.
The white paper addresses key challenges with the current cloud outage RDS, including:
A New View on Cloud Outage RDS analyzes Lloyd’s RDS 17.3 “Cloud Cascade”, offering a more practical and insightful scenario that aligns results with the actual structure of the cloud landscape.
The white paper addresses key challenges with the current cloud outage RDS, including:
- A lack of specificity about the nature of the event
- A lack of specificity about the scope of the outage event
- A lack of specificity about the impact on insureds
- Superfluous details about the event
- Return period estimates, and
- Inadequate economic loss assumptions
Parametrix proposes essential data elements to specify a new cloud outage scenario. Utilizing different, more granular, and readily available data will result in a more plausible RDS.
This will enable more informed decisions regarding capital allocation, risk management strategies, and pricing of cloud-related insurance products.
This will enable more informed decisions regarding capital allocation, risk management strategies, and pricing of cloud-related insurance products.
Intelligence from
Parametrix
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Parametrix creates cutting-edge tools and models that enable companies, insurers, and reinsurers to quantify, manage, and transfer their exposure to cloud outage risk with unparalleled accuracy.
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