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Marsh to launch $10 billion Stratus exchange for data center risks
Stratus will connect Marsh clients with multiple alternative and traditional capital providers, and target operational risks tied to data centers and their critical support systems.
Broker Marsh plans to launch Stratus, a new property insurance exchange designed to bring alternative sources of insurance and reinsurance capital into digital infrastructure risk transfer. The exchange is set to offer access to up to $10 billion in property insurance capacity on a single placement basis, with a focus on the complex operational risks involved in projects such as data centers and related critical support systems.
Marsh said capacity for US-domiciled company exposures will be arranged through the global property risk transfer market, and that Stratus is structured to let capacity providers evaluate risks and express underwriting appetite for each placement. The broker added that it has lined up 30 traditional and alternative capital provider participants to assess each risk individually via the exchange.
Stratus is also positioned as a response to capacity constraints facing the data center market. Marsh cited Allianz Commercial’s view that the global data center insurance market could grow from about $11 billion to more than $24 billion by 2030, and it noted that capacity may be insufficient for expected new builds over the next few years.
Marsh described Stratus as creating a more structured trading environment to help providers assess, quantify, and diversify risk, including concerns about aggregation during the operational phase. The broker also said Stratus will use its data and analytics and advisory services to support customized property insurance coverage as these digital infrastructure assets move toward operation.