AkinovA, the electronic marketplace for the transfer and trading of re/insurance risk, has announced that it recently facilitated the purchase of a parametric Cloud Outage product for an Asia-based technology company.
Completed on January 30, 2020, this transaction will provide protection in the event that a named Cloud Service Provider (CSP) suffers an outage.
Growing dependencies on international CSPs such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform have increasingly prompted corporations to look for ways to transfer part of these risks.
The tech firm in question reasoned that any interruption to its ability to access proprietary data located on the cloud would have a significant impact on its business.
During the transaction, the cover buyer was represented on the marketplace by Guy Carpenter, the reinsurance broking arm of Marsh & McLennan Companies.
Specialist re/insurer Hiscox also played a role in developing, structuring, and providing capital for the transaction, while PCS, a Verisk business, will report on the named perils of the contract.
The term of the parametric product was set at three months to enable the cover buyer to review their risk exposure to the CSP on a quarterly basis.
AkinovA explained that the trade was carried out using a standardised insurance contract similar to the one used to complete the first cyber trade on the AkinovA Marketplace in December 2019.
It was transacted on the with full regulatory oversight from the Bermuda Monetary Authority (BMA), under AkinovA’s Insurance Regulatory Sandbox licence.
