2026-08-14 · Source: Insurance Journal (API)
Summary in 3 Points • AIG launched a new Parametric Cloud Outage Solution for cyber insurance protection • The solution covers cloud service outages and downtime, developed with Parametrix • Global enterprise spending on cloud services reached $129 billion in early 2026 --- American International Group (AIG) has introduced a Parametric Cloud Outage Solution, aimed at providing an additional layer of cyber insurance protection for businesses. This solution is designed to offer predetermined payments when specific cloud service outages occur, based on a predefined formula that considers downtime and its financial impacts. Developed in collaboration with Parametrix, it covers events such as outages in cloud infrastructure and software-as-a-service platforms, subject to policy terms. The solution is currently available in the United States as an endorsement for eligible AIG cyber clients. The launch comes amid increasing global enterprise spending on cloud infrastructure services, which reached $129 billion in the first quarter of 2026, marking a significant growth from the previous year.
The introduction of AIG's Parametric Cloud Outage Solution could influence underwriting practices in the London Market by points to the need for innovative cyber risk solutions. As businesses continue to rely heavily on cloud services, insurers may need to consider similar parametric products to address potential coverage gaps. This development may lead to adjustments in policy wordings to accommodate parametric triggers and redefine coverage limits. Additionally, the rising global expenditure on cloud infrastructure suggests a growing exposure that London Market insurers could tap into, potentially affecting pricing strategies and risk assessments.