NEW YORK, August 14 — American International Group, Inc. (NYSE: AIG) today announced a new Parametric Cloud Outage Solution, providing clients an additional layer of cyber insurance protection to help them recover faster from business interruption losses resulting from cloud service outages and cloud provider downtime. These events can disrupt operations, customer transactions, and access to critical business applications.
Parametric insurance provides a predetermined payment when a specific event or policy trigger occurs. AIG’s new Parametric Cloud Outage Solution triggers are based on a predefined formula that considers cloud service downtime and the associated potential financial impact. Covered events may include outages affecting cloud infrastructure, software-as-a-service platforms, or other cloud-based technology services, subject to policy terms and conditions.
Enterprise spending on cloud infrastructure services has increased steadily among businesses of all sizes. According to Synergy Research Group, global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, an increase of 35% from the prior year, the highest growth rate since 2021.
“As businesses increasingly invest and rely on cloud-based solutions to better serve customers and run critical operations, even a short outage can have significant operational and financial impacts,” said Tracie Grella, Global Chief Underwriting Officer of Cyber Risk Insurance at AIG. “AIG’s Parametric Cloud Outage Solution is designed to give organizations faster access to funds when disruptions occur, helping them respond with greater confidence and certainty while complementing their broader risk management and insurance programs.”
AIG’s Parametric Cloud Outage Solution’s key features include:
- A shorter waiting period of two hours
- No monetary retention following the waiting period
- Transparent, predefined policy triggers
- Rapid claims assessment and payout process
- Ability to manage cyber and cloud outage coverage through a single insurance policy
Developed in partnership with Parametrix, a leading provider of digital infrastructure insurance solutions, the parametric formula is backed by Parametrix’s proprietary monitoring of more than 750 data centers globally and tracking over 9,000 software and other technology providers (e.g. SaaS, PaaS, and IaaS).
“In today’s environment, carriers and brokers are increasingly looking for ways to bring additional value and innovation to insureds,” said Sharon Haran, Chief Commercial Officer at Parametrix. “Our Cloud Outage Solution creates an opportunity to do exactly that, and we are delighted to work with AIG to bring this solution to their insureds. Leveraging technology and parametric structures, this solution delivers relevant protection for a growing operational risk in a simple, scalable, and economically viable way.”
AIG’s Parametric Cloud Outage Solution is currently available in the United States as an endorsement for eligible AIG cyber clients.