Earlier this week, Parametrix, the leading provider of cloud downtime insurance, monitored an outage of Microsoft Azure, the world’s second-ranked cloud service provider.
Part of the ‘Big Three’, which includes Amazon Web Services and Google Cloud Platform (GCP), Azure boasts a reported 22% global market share.
The outage event affected thousands of businesses and tens of thousands of users, for which most companies impacted will be entirely uninsured.
MS Azure experienced an outage event that affected Azure resources in multiple regions. According to the proprietary Parametrix Cloud Monitoring System, which immediately identified the outage, the incident lasted for approximately two hours and 24 minutes.
Parametrix said that it will issue claim payments to eligible insureds within weeks, not months, of their confirmation of loss. Previous claims have been paid by Parametrix within five working days.
Concerns surrounding cloud downtime risk exposure are increasing more and more as businesses across the world are becoming increasingly dependent on cloud computing.
Parametrix stated that it will issue its first annual Cloud Outage Report in the coming weeks.
Yonatan Hatzor, co-founder and CEO of Parametrix, commented: “We’re committed to supporting Parametrix policyholders who have been affected by this incident. We will swiftly help them mitigate any financial loss caused by the outage, according to the high standards we have set for service excellence. That’s what we’re here for.
“Companies which are not in possession of dedicated cloud downtime insurance may try to claim coverage under their dependent business interruption cyber cover, if they have it, but they will have to quantify their losses, which are unlikely to exceed their deductibles or waiting periods. This event demonstrates that the traditional cyber BI policies do not provide sufficient coverage to insureds.”
