Parametrix is delighted to see expanded support from investors across the market to cover the tail risk of cloud outage events through Hannover Re’s successful renewal of its landmark parametric catastrophe bond, Cumulus Re (Series 2026-1), Sharon Haran, Managing Director of Parametrix Analytics, has said.
As we said at the time, this is the reinsurer’s largest yet as Hannover Re continues to build on the program to provide valuable retrocessional cyber risk protection.
Recall that, Hannover Re previously secured $13.75 million of retro protection from the first Cumulus Re (Series 2024-1) parametric cloud outage catastrophe bond in late March 2024.
The global reinsurer then followed that up with a successful renewal in March 2025, securing $20 million in retrocessional cyber reinsurance protection covering cloud outage events from a Cumulus Re (Series 2025-1) issuance.
Much like Hannover Re’s previous two transactions, this new Cumulus Re 2026-1 cloud outage catastrophe bond features a parametric trigger, which is based on data related to outages of major US cloud provider regions and designed by Parametrix, a specialist in modelling and analytics for parametric cloud downtime cyber risk transfer.
As well as this, just like the first two Cumulus Re cloud outage cat bonds, this renewal for 2026 sees the cyber exposure risk being placed with investors on a private basis using Hannover Re’s Kaith Re Ltd. vehicle.
The parametric cat bond provides Hannover Re with 12 months of protection against the accumulation of losses arising from a cloud-outage event.
The cat bond is triggered by a sustained downtime that affects one of the three largest public cloud service providers, Amazon Web Services, Microsoft Azure, or Google Cloud Platform, in specified major U.S. and EU provider regions.
These have been categorized into three tiers based on their potential exposure, with a different payout formula for each tier.
Reflecting strong investor demand across the market, the Cumulus Re 2026-1 parametric cat bond was upsized to $35 million from $20 million from the Cumulus Re (Series 2025-1) issuance.
It’s also worth noting that Cumulus Re was not triggered during its first two years.
Sharon Haran, Managing Director of Parametrix Analytics, commented: “Multiple significant cloud outages occurred during the second half of 2025. Each of the big three providers had at least one in an important cloud region, which has underlined the potential for a catastrophic cloud outage.”
Adding: “It’s remote, but it’s possible. We are delighted to see the expanded support from investors to cover the tail risk, which makes shorter outage risks insurable down the line.”
Dirk Heuer, Head of Group Protection at Hannover Re, said: “We are proud to collaborate on solutions addressing these rapidly developing risk types. Now in the third year since the first Cumulus Re bond was brought to market, we are confident that the risk transfer to capital markets will continue to attract additional capacity to this sector.”
This Cumulus Re 2026-1 cyber catastrophe bond becomes the fourteenth cyber cat bond isted in our Deal Directory, but only the third to feature a parametric trigger, all of which are Cumulus Re deals.
As a reminder, you can read all about this Cumulus Re (Series 2026-1) private cloud outage cyber catastrophe bond in our Deal Directory.
