Lockton and Parametrix have announced a new partnership to develop an innovative Service Level Agreement (SLA) insurance to the data centre market.
Together, the insurance brokerage and digital risk solutions provider are outlining coverage that delivers immediate financial compensation in the event of an SLA breach.
“As uptime requirements and financial scrutiny grow, availability is no longer just a technical issue, it’s a strategic and financial risk,” said Rick Wong, Parametrix’s head of insurance.
“This partnership helps operators and investors manage that risk proactively- optimising capital efficiency, lowering financing costs, and increasing confidence in the stability of their assets.”
Backed by leading syndicates at Lloyd’s of London, the new parametric coverage is responding to the growing demand for financial protection against performance risk in digital infrastructure.
The parametric SLA product is the latest in a series of innovations redefining the role of insurance in technology infrastructure.
“This solution addresses one of the most acute financial pain points the data centre industry is facing today: downtime-related SLA exposure,” said Preet Gill, executive vice president and technology risk practice leader at Lockton.
“It’s a prime example of how our team combines deep sector expertise with innovative insurance structures to deliver immediate, measurable value,” he said.
The new product reflects the growing convergence between traditional and decentralised finance, as institutional insurance frameworks are applied to performance risks that are typically associated with digitally native infrastructures.
