ILLUSTRATIVE PARAMETERS
Built by Matt Bishop · Bishop RiskTech

Parametric cover for cloud outages and data center SLA breaches

Size the hourly benefit, waiting period and limits from a buyer's needs; price it transparently; draft the wording; compare it with SLA credits, cyber BI and CBI; and replay real outages. Every default is illustrative and is not a carrier rate. Hover any number to see its formula and source. Tags: S# cited source, EST estimate, USER your input.

★Guided menu

Four steps: who the buyer is, why they need outage cover, the recommended cover and wording, and how it fits with their cyber policy.

1 · The buyerCompany type and key facts
2 · Why they need itThe exposure in plain words
3 · Recommended coverStructure and sample wording
4 · Fit with cyberFilling the gap before cyber pays
    What their current protection pays for a 6-hour outage
    One outage, hour by hour
    RetainedParametricCyber BI

    1Buyer needs → recommended structure

    Answer the questions on the left. The recommendation on the right updates as you type.

    Why this structure
    Basis-risk meter EST
    DSCR with and without cover (year with breaches) EST

    2Pricing estimator

    Frequency × duration model with a 20,000-year simulation. All parameters are illustrative public-data estimates, not Parametrix rates.

    Calibration mode — start from a market rate-on-line and solve for the event frequency it implies.
    Annual payout exceedance curve
    Premium vs waiting period
    Premium heatmap: waiting period × max duration
    Sensitivity (each input ±30%)

    Premium P = max[(EL + CoC × (VaR99.5 − EL) × c) ÷ (1 − e), ROLmin × L]. EL from simulation with Poisson event counts, paid time rounded up to 15 minutes, capped by per-event limit and annual aggregate. Model structure follows the research brief with corrections (lognormal tail default; max duration stops where cyber BI starts).

    3Wording builder

    Clause text assembled from your choices. Highlighted values stay in sync with the sections above. Model language, drafting aid only.

    Wording checks

    4Gap analysis

    Hour by hour for a single outage: what the buyer loses and what each cover pays back. Drag the outage length.

    RetainedParametricCyber BICloud SLA creditCBI (property)

    Cloud credits: AWS EC2 region tiers 10/30/100% of that service's monthly bill below 99.99/99.0/95.0% monthly availability S16; Azure and GCP 10/25/100% S17–18. Cyber BI waiting periods typically 8–12 h S9,S21. CBI under property needs physical damage at the supplier, so it pays nothing for a software outage.

    5Outage replay

    Run the buyer above through real, sourced outages and see what each cover would have paid.

    All events, same buyer — parametric payout under current structure vs cyber BI (after its waiting period, before sublimit)
    Not a cloud-region outage: CrowdStrike, 19 Jul 2024. A faulty endpoint update; cloud regions largely stayed up, so a cloud-region trigger pays $0. Fortune 500 direct loss estimated at $5.4B with insured loss of $0.54–1.08B S15; CyberCube global insured $0.4–1.5B S20. Cyber system-failure cover is the right home. This is shown as an honest basis-risk example, not replayed by the hour.

    6Outage history and sources

    The data the tool reads from. Every event row links to its official incident report or news source.

    Open datasets and trackers
    How parametric products calibrate
    Research sources