Insurance
Home›Insurance›Industry & Deals›AIG launches parametric cloud outage cyber coverage
AIG launches parametric cloud outage cyber coverage
The product is available in the US as an endorsement for eligible AIG cyber clients, with triggers tied to cloud downtime and potential financial impact.
American International Group has launched a Parametric Cloud Outage Solution designed to add cyber insurance protection for business interruption losses tied to cloud service outages and cloud provider downtime, Insurance Journal reports.
The coverage uses parametric insurance mechanics, meaning it can make a predetermined payment when specified triggers occur. AIG said the solution is based on a predefined formula that considers cloud service downtime and the associated potential financial impact.
AIG developed the offering in partnership with digital infrastructure insurance solutions provider Parametrix, and it covers events such as outages affecting cloud infrastructure, software-as-a-service platforms, or other cloud-based technology services, subject to policy terms and conditions.
AIG said cloud spending has continued to rise, citing Synergy Research Group data that global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, up 35% year over year. AIG said the approach is meant to help organizations access funds faster when disruptions occur, complementing broader risk management and insurance programs.