Lloyd's launches first off-the-shelf parametric IT BI policy

Lloyd’s has launched a new business interruption policy designed to protect SMEs against IT disruption or downtime. Led by Tokio Marine Kiln and supported by RenaissanceRe, Parametrix Insurance is the first off-the-shelf parametric policy of its kind.

By using a parametric trigger, the policy automatically pays out if a customer’s critical IT services, such as cloud, e-commerce or payment systems, are disrupted -- reducing loss adjusting time.

CEO of Parametrix Insurance, Yonatan Hatzor, explained: “Businesses have shifted to managing most of their critical IT operations by using third-party service providers, thereby increasing their vulnerability to disruption. As a result, critical technology downtime has become the fastest growing risk for businesses today, whether you are a technology company or not. On top of this, the existing claims process in the field is complicated, expensive and time consuming."

Hatzor says this new approach addresses all these issues, saving time and money, and making tech insurance accessible to new business segments.

Trevor Maynard, Lloyd’s head of innovation, commented: “We know that insurance products and services have to evolve to respond to the challenges of the COVID-19 pandemic and help our customers cover new or heightened risks that they may encounter now or in the future. That is why Lloyd’s Product Innovation Facility and our new Lloyd’s Lab cohort are both looking at ways the industry can do this more effectively. I am delighted to see evidence of this today with the launch of Parametrix.”

Tom Hoad, head of innovation at Tokio Marine Kiln, added: “Third party cloud service providers help our clients trade within an ever-changing world and Parametrix have done a great job in developing an insurance product that helps build resilience in this space. We hope that the PIF BETA (comprising TMK, RenaissanceRe and others), which is supporting Parametrix Insurance with underwriting capacity, continues to be an effective accelerator for other technology-driven product solutions.”

    Share Story:

Recent Stories

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks.

Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021