Parametrix introduces performance guarantee

Parametrix Insurance Services LLC Tuesday said it has launched a guarantee for contractual performance obligations made by large enterprises for the uninterrupted delivery of their platform or service backed by parametric insurance.

The parametric insurance backing the agreements is underwritten at Lloyd’s of London with warranty limits from $2 million to $75 million using predefined triggers such as system downtime in excess of a specified threshold.

Payouts are triggered automatically when an insured system interruption occurs, Parametrix said in a statement.

Performance guarantees backed by parametric insurance can take the form of a service level agreement, ensuring compensation for unmet uptime commitments, or a performance warranty, covering financial losses from service disruptions, the statement said.

Warranties can be structured to align with key metrics such as minimum uptimes, transaction throughputs, or processing times, Parametrix said.