cloudINSURE Example Policy Wordings
Introduction
The following sample policy wordings illustrate how Riskwolf's parametric insurance solutions for cloud service disruptions can be structured. These examples demonstrate how cloud downtime indices are incorporated into formal insurance contracts.
Basic Policy Template
| Policy Item | Description |
|---|---|
| Peril | This parametric insurance Policy will cover the Insured against cloud service unavailability for a specified cloud provider, region, and service as detailed herein. |
| Policy Period | As per schedule attached to the policy. |
| Reference Cloud Provider | The cloud service provider as specified in the policy schedule (e.g., AWS, Azure, Google Cloud). |
| Reference Region | The cloud region as specified in the policy schedule (e.g., us-east-1, westeurope). |
| Reference Service | The specific cloud service as specified in the policy schedule (e.g., EC2, S3, Virtual Machines). |
| Reference Data Source | Riskwolf Cloud Observatory monitoring system or other source as specified in the policy schedule. |
| Loss Notification | The Calculation Agent will be responsible for notifying the insurer about a payout due under this contract within 24 hours after the insured event has been detected. |
| Risk Coverage Start Date | As per schedule attached to the policy. |
| Risk Coverage End Date | As per schedule attached to the policy. |
| Sum Insured | As per schedule attached to the policy. |
| Insured | As per schedule attached to the policy. |
| Premium | As per schedule attached to the policy. |
| Coverage Details | This parametric insurance policy covers the insured against the risk of cloud service unavailability during the risk coverage period. If the specified cloud service becomes unavailable for longer than the trigger duration, the insured is eligible for a claim under this insurance policy. |
| Index | Downtime Duration (DD) refers to the continuous period during which the specified cloud service is unavailable, as measured by the Riskwolf Cloud Observatory monitoring system. |
| Trigger | If the Downtime Duration measured for the Reference Cloud Provider, Region, and Service exceeds the 'Strike' level as per the schedule, the policy is triggered. |
| Strike | The minimum duration of downtime required to trigger a payout, as specified in the schedule attached to the policy. |
| Exit | The downtime duration at or above which the maximum payout is made, as specified in the schedule attached to the policy. |
| Payout Structure | This Policy provides for payment of claim if the Index value as observed exceeds the Strike value. The claim amount will be linearly interpolated from zero, when the observed index equals the Strike value, to the Maximum Claim Amount when the observed index equals or exceeds the Exit value. |
| Claim Settlement | The claim if any would be settled within 5 business days of the end of the insured event. |
| Contact | 1. Calculation Agent - Riskwolf AG 2. Claims Intimation / Redressal - Insurer |
Example 1: SaaS Provider AWS Coverage
PARAMETRIC CLOUD DISRUPTION INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CLOUD-AWS-2025-0087 |
| Insured | Example SaaS Corporation |
| Cloud Provider | Amazon Web Services (AWS) |
| Cloud Region | us-east-1 (N. Virginia) |
| Cloud Service | EC2, RDS |
| Sum Insured | $25,000 per hour of downtime (max $100,000) |
| Premium | $4,500 per month |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Strike (Trigger) | 15 minutes of continuous downtime |
| Exit | 4 hours of continuous downtime |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of AWS service unavailability in the us-east-1 region affecting EC2 and/or RDS services.
INDEX DEFINITION
The index "Downtime Duration" measures the continuous period during which either AWS EC2 or RDS services in the us-east-1 region are unavailable, as detected by at least 2/3 of Riskwolf's monitoring agents.
PAYOUT CALCULATION
- If Downtime Duration < 15 minutes: No payout
- If Downtime Duration ≥ 15 minutes and < 4 hours: Proportional payout based on formula below
- If Downtime Duration ≥ 4 hours: 100% payout ($100,000)
Payout Formula: [(Downtime Duration - Strike) / (Exit - Strike)] × Sum Insured
Example calculation: If downtime duration is 1 hour: [(60 min - 15 min) / (240 min - 15 min)] × $100,000 = (45/225) × $100,000 = 0.2 × $100,000 = $20,000
Example 2: E-commerce Platform Azure Coverage
PARAMETRIC CLOUD DISRUPTION INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CLOUD-AZ-2025-1346 |
| Insured | Global Shop Online Ltd. |
| Cloud Provider | Microsoft Azure |
| Cloud Region | westeurope (Netherlands) |
| Cloud Service | Virtual Machines, Blob Storage |
| Sum Insured | €15,000 per hour of downtime (max €60,000) |
| Premium | €3,000 per month |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Strike (Trigger) | 10 minutes of continuous downtime |
| Exit | 4 hours of continuous downtime |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of Azure service unavailability in the westeurope region affecting Virtual Machines and/or Blob Storage services.
INDEX DEFINITION
The index "Downtime Duration" measures the continuous period during which either Azure Virtual Machines or Blob Storage services in the westeurope region are unavailable, as detected by at least 2/3 of Riskwolf's monitoring agents.
PAYOUT CALCULATION
- If Downtime Duration < 10 minutes: No payout
- If Downtime Duration ≥ 10 minutes and < 4 hours: Proportional payout based on formula below
- If Downtime Duration ≥ 4 hours: 100% payout (€60,000)
Payout Formula: [(Downtime Duration - Strike) / (Exit - Strike)] × Sum Insured
Example calculation: If downtime duration is 30 minutes: [(30 min - 10 min) / (240 min - 10 min)] × €60,000 = (20/230) × €60,000 = 0.087 × €60,000 = €5,220
Example 3: Financial Services Multi-Cloud Coverage
PARAMETRIC CLOUD DISRUPTION INSURANCE POLICY
SCHEDULE
| Item | Details |
|---|---|
| Policy Number | RW-CLOUD-MC-2025-7729 |
| Insured | FinTech Solutions Inc. |
| Cloud Provider | Multiple (AWS, Azure, Google Cloud) |
| Cloud Regions | us-east-1, westeurope, asia-east1 |
| Cloud Services | Compute, Database, Storage |
| Sum Insured | $50,000 per hour of downtime (max $250,000) |
| Premium | $12,500 per month |
| Policy Period | 01 January 2025 to 31 December 2025 |
| Strike (Trigger) | 5 minutes of continuous downtime |
| Exit | 5 hours of continuous downtime |
| Payout Structure | Linear between Strike and Exit |
COVERAGE TERMS
This parametric insurance policy covers the Insured against the financial impact of service unavailability across multiple cloud providers affecting the insured's global financial transaction processing capabilities.
INDEX DEFINITION
The index "Downtime Duration" measures the continuous period during which any covered cloud service in the specified regions is unavailable, as detected by at least 2/3 of Riskwolf's monitoring agents.
PAYOUT CALCULATION
- If Downtime Duration < 5 minutes: No payout
- If Downtime Duration ≥ 5 minutes and < 5 hours: Proportional payout based on formula below
- If Downtime Duration ≥ 5 hours: 100% payout ($250,000)
Payout Formula: [(Downtime Duration - Strike) / (Exit - Strike)] × Sum Insured
Example calculation: If downtime duration is 15 minutes: [(15 min - 5 min) / (300 min - 5 min)] × $250,000 = (10/295) × $250,000 = 0.034 × $250,000 = $8,500
Note: These are sample policy wordings for illustration purposes only. Actual policy wordings may vary based on specific requirements, local regulations, and individual risk assessments.