American International Group, Inc. (NYSE: AIG) has introduced a Parametric Cloud Outage Solution, a cyber insurance product designed to cover business interruption losses resulting from cloud service outages. The product is currently available in the United States as an endorsement for eligible AIG cyber clients.

The solution uses a predefined formula to determine payouts based on cloud service downtime and its associated financial impact. Covered events may include outages affecting cloud infrastructure, software-as-a-service platforms, and other cloud-based technology services, subject to policy terms and conditions.

Key features of the product include a two-hour waiting period, no monetary retention after that period, predefined policy triggers, and a rapid claims assessment and payout process. Clients can also manage cyber and cloud outage coverage through a single policy.

The product was developed in partnership with Parametrix, which monitors more than 750 data centers globally and tracks over 9,000 software and technology providers. Parametrix's proprietary monitoring data underpins the parametric formula used to assess and process claims.

Tracie Grella, Global Chief Underwriting Officer of Cyber Risk Insurance at AIG, said the solution is "designed to give organizations faster access to funds when disruptions occur, helping them respond with greater confidence and certainty while complementing their broader risk management and insurance programs."

According to data cited from Synergy Research Group, global enterprise spending on cloud infrastructure services reached $129 billion in the first quarter of 2026, a 35% increase from the prior year and the highest growth rate since 2021.