Parametrix

The business targets a significant market gap, insuring against losses from downtime which are estimated to cost businesses $700 billion annually. Its clientele includes enterprise-level organizations and other businesses reliant on third-party IT services. Revenue is generated through the sale of these specialized insurance policies, which are underwritten by major A-rated global insurers. The company operates with offices in New York and Tel Aviv. A significant milestone was the completion of a $17.5 million Series A funding round in May 2021, led by FirstMark Capital and F2 Ventures, to fuel global expansion.

Parametrix's core product is a parametric insurance policy that provides coverage for business interruptions caused by outages of third-party services like cloud providers (AWS, Azure, Google Cloud), e-commerce platforms, payment gateways, and CRMs. Unlike traditional insurance that requires a lengthy claims process to assess actual losses, Parametrix's model uses predefined triggers. The company's proprietary monitoring system continuously tracks the performance of thousands of IT services globally, collecting billions of data points. When this system detects a downtime event that meets the policy's pre-agreed parameters (such as duration), it automatically triggers a fixed, predetermined payout. This process ensures rapid compensation, typically within 15 days, without deductibles or complex claims adjustments, allowing clients to quickly recover financially. In April 2024, Parametrix, in partnership with Hannover Re, structured and launched Cumulus Re, the world's first catastrophe bond specifically covering cloud outage risks.