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.”
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