Reinsurance News

Critical cloud outage risk remains significant despite decline in occurrence: Parametrix

7th April 2026 - Author: Saumya Jain -

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Parametrix, a provider of digital business interruption solutions, disclosed in a new whitepaper that although critical cloud service outages declined in 2025 after several years of sustained increases, the risk remains significant.

According to the firm’s Cloud Outage Risk Report 2025, after reaching a peak of 244.8 hours in 2024, the total duration of “criticalˮ downtime events, those causing complete or significant service disruption, fell by approximately 28% to 175.3 hours in 2025.

The report highlights that despite an overall decrease in downtime, high-impact events persisted with major disruptions affecting some of the most critical cloud regions and services, including GCP outage in us-central1 region in June and the AWS outage us-east-1 in October.

The year 2025 is notable cause ever major cloud provider experienced at least one impactful event, along with significant disruptions in critical digital supply chain services, namely the global GCP outage on June 12th, Cloudflare on August 21st, November 18th, and December 5th, AWS outage on October 20th, and Azure failure on October 29th.

In the AWS outage, the most significant spike and the biggest event Parametrix has recorded to date was the AWS us-east-1 outage, caused by failures in DynamoDBs DNS automation that severed connectivity for several dependent services. Shortly after the AWS incident, Azure experienced a global outage of Azure Front Door, caused by a configuration change.

The report states, “This sequence of events illustrates that aggregate duration isnʼt the only important factor when measuring the severity of cloud outage events. While total downtime hours were lower in 2025, the impact of specific incidents remained high. Every major cloud provider experienced at least one impactful event.”

Jonatan Hatzor, Co-founder and Chief Executive Officer, Parametrix, commented, “As businesses and the world become increasingly reliant on cloud-based services, cloud providersʼ ability to keep services operating continuously showed improvement in 2025.

He continued, “However, after a relatively event-quite first half, interruptions resumed and reached higher levels during the second half of the year. We saw significant outage events at data centres operated by each of the three main cloud providers.

“If average monthly downtime remains the same for the first half of 2026, weʼ re looking at a record-breaking 12 months from July to June. As reliance, and therefore the values at risk, continue to escalate, it is more important than ever to secure financial protection against outages of the digital supply chain.”