Announcing Our Investment in Parametrix
Amish Jani / 05.26.21
Amish Jani / 05.26.21
We’re thrilled to welcome Parametrix Insurance to the FirstMark portfolio!
In an era when software is eating the world, every company is a technology company. And every company increasingly relies on third-party cloud software to power both their customer facing products and services, and their internal infrastructure. Therefore, it’s more important than ever for third party providers to provide reliable service.
Yet, companies currently have no ability to mitigate or insure against the risk of third-party service outages. Every week brings another high-profile story about the impact of outages, including some highly notable instances of global disruption in 2020 involving Google, AWS, Azure, Zoom, Stripe and many others. In cases such as these, companies can experience revenue losses, recovery expenses, lost productivity, SLA liability, and other material risks. This is where Parametrix Insurance comes in.
Parametrix protects companies from the fallout of business interruption caused by third-party systems outages. Parametrix’s downtime insurance is powered by proprietary technology that enables them to accurately underwrite policies, trigger compensations in real-time at pre-agreed hourly rates, and manage exposure to risk.
From a customer’s standpoint, Parametrix provides protection from events outside of the company’s control, and as importantly, provides near immediate financial compensation when downtime events occur. Obvious use cases include protection for companies that have signed SLAs / uptime requirements with their top customers, funding bonus pools for engineering teams called in during overnight or holiday times for emergency remediation, and revenue stability for consumer facing transactional businesses where any downtime is immediate foregone sales. In addition, the global monitoring capabilities allow engineering teams to quickly ascertain if an outage is their application or their cloud provider. This makes Parametrix a product that can help any technology company executive sleep more soundly at night.
Cyber insurance is one of the fastest growing insurance lines and products, but the current slate of cyber products has major gaps. In particular, most existing cyber lines are focused on cyber security, ignoring some of the largest sources of exposure for modern companies like cloud downtime. At the same time, traditional insurance providers lack the technology and technical skills to understand and underwrite against third party cloud dependencies. And perhaps even more exciting is the fact Parametrix is the first mover in a rapidly-growing and strategically important category.
We’re excited to work with Yonatan, Tamir, Neta, Ori and the rest of the Parametrix team to help build the business. Already, in our first month working together, our Platform team has helped Parametrix secure its first major U.S. distribution partnership, and we’re just getting started.
If you’re interested in building a transformative insurance product that will provide fundamental protection for businesses in the era of the cloud, you can learn more here and check out positions at Parametrix on their careers page.