Parametrix, a provider of cloud monitoring, modelling and insurance services, has placed its third and largest cloud outage catastrophe bond, Cumulus Re III, attracting a greater number of investors than its predecessors and providing sponsor Hannover Re with $35 million of retrocessional protection for 2026–27.
The parametric bond, first reported on March 9 by our sister publication Artemis, provides 12 months of protection against the accumulation of losses arising from a cloud-outage event.
Coverage is triggered by sustained downtime affecting one of the three largest public cloud service providers, Amazon Web Services, Microsoft Azure or Google Cloud Platform—across specified major US and EU regions.
According to Parametrix, these regions are grouped into three tiers based on potential exposure, with separate payout formulas applying to each.
Further details on Cumulus Re III can be found in the Artemis Deal Directory, which aims to serve as a one-stop resource for information on cat bond and insurance-linked securities (ILS) transactions.
Sharon Haran, Managing Director of Parametrix Analytics, commented, “Multiple significant cloud outages occurred during the second half of 2025. Each of the big three providers had at least one in an important cloud region, which has underlined the potential for a catastrophic cloud outage.
“It’s remote, but it’s possible. We are delighted to see the expanded support from investors to cover the tail risk, which makes shorter outage risks insurable down the line.”
Dirk Heuer, Head of Group Protection at Hannover Re, added, “We are proud to collaborate on solutions addressing these rapidly developing risk types. Now in the third year since the first Cumulus Re bond was brought to market, we are confident that the risk transfer to capital markets will continue to attract additional capacity to this sector.”
