Parametrix is a leading provider of cloud monitoring, modeling, and insurance services. Pulse 2.0 interviewed Parametrix Co-Founder and CEO Jonathan Hatzor to learn more about the company.
Jonathan Hatzor’s Background
Could you tell me more about your background? Hatzor said:
“Prior to Parametrix, I was founder and CTO of Matter, a new property visualization tool using 3D imagery for virtual tours, which was subsequently acquired by Treedis.”
Formation of Parametrix
How did the idea for the company come together? Hatzor shared:
“The idea for our company came from an interest in the cloud space and a desire to innovate within the insurance industry. We explored various opportunities, focusing not only on existing lines but also on emerging risks that traditional insurance wasn’t addressing. Cloud downtime is one of the most significant and rapidly growing risks, yet there was no proper solution available. We also saw potential for improvement in how insurance operates, particularly in streamlining the claims process, which led us to adopt a parametric model to provide faster, more transparent payouts.”
Favorite Memory
What has been Hatzor’s favorite memory working for the company so far? Hatzor reflected:
“One of my favorite memories is when we secured reinsurance capacity from new partners. As a startup introducing a completely new concept in the market and addressing a previously unrecognized risk, it was a huge challenge to gain the trust and confidence of established reinsurers.”
“Getting their buy-in wasn’t just about financial backing; it was about validating our vision and demonstrating that this emerging risk was significant enough for the market to take seriously. Earning that trust from experienced industry leaders was a defining moment, confirming that we had developed a product with real potential and opening the door for us to scale and bring our solution to market.”
Core Products
What are the company’s core products and features? Hatzor explained:
“Parametrix cloud outage insurance: Parametrix cloud outage insurance protects companies against any losses that result from a cloud outage. Parametrix cloud outage insurance addresses a critical coverage gap in the market as traditional cyber insurance policies can be limited and carry exclusions that leave a company vulnerable to potential losses from a cloud outage. Average Parametrix policies are for one year, and pricing is based on the client’s annual revenue and cloud infrastructure.”
“Parametrix Infrasight: Infrasight is a real-time portfolio risk exposure management tool for third-party IaaS, PaaS, and SaaS risks. It enables cyber insurers and reinsurers to gain unparalleled, granular visibility into their portfolios’ third-party exposure so that they can: 1) facilitate mapping of accumulation and aggregation points, 2) define realistic cloud outage return scenarios (RDSs), and 3) quantify potential financial and insurance losses with confidence and implement structured risk transfer strategies. Infrasight is a SaaS with an annual subscription fee.”
Challenges Faced
What challenges have Hatzor at the team face in building the company? Hatzor acknowledged:
“One of the biggest challenges we’ve faced in our sector is educating brokers. In the insurance industry, especially with new products for emerging risks, brokers play a key role as the trusted advisors for their clients. However, the industry as a whole isn’t very innovation-driven. Many valuable new insurance products fail not because of their value, but because they don’t get the traction needed due to gaps in broker education. Brokers are primarily focused on renewals and existing lines, with limited capacity to explore or promote new products. We’ve managed to break through by being consistent and investing heavily in broker education, which has led to many successful partnerships and progress in getting our product out there.”
Evolution Of Parametrix’s Technology
How has the company’s technology evolved since launching? Hatzor noted:
“Parametrix developed the first-of-its-kind proprietary technology that provides a global view into the performance and availability of a variety of third-party IT with millisecond precision detection. We collect over 18.5 billion data points each year from 297 data centers around the world, with granular data sets with visibility into latency, connectivity, response codes, job statistics, duration, severity and other parameters used in incident definition. Data collection is stored historically for risk analysis and predictions. The proprietary system-produced data has been collected for over five years, while publicly available data has been collected historically 10 years back. We produce real-time downtime alerts on over 50,000 metrics designed to send canary indications.”
“As our technology has evolved and as we’ve accumulated more diverse and comprehensive data sets, we’ve gained deeper insights into the nuances of cloud risk. This richer understanding allows us to model the risk more effectively, capturing different dimensions and aspects that were previously overlooked. The ability to leverage this evolving data gives us a significant advantage in delivering more accurate and dynamic models for both underwriting and risk management.”
Significant Milestones
What have been some of the company’s most significant milestones? Hatzor cited:
“In April 2024, Parametrix, in partnership with Hannover Re, served as the modeling and calculating agent for the structure of the first-of-its-kind parametric, cloud outage catastrophe bond “Cumulus Re.” This was the first issuance of a cyber catastrophe bond to cover the specific risk of cloud outages as well as the first to have a parametric trigger.”
Customer Success Stories
When asking Hatzor about customer success stories, he highlighted:
“Parametrix provided modeling and calculating services to support Hannover Re with the transaction of ‘Cumulus Re,’ the first-of-its-kind parametric cloud outage catastrophe bond.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Hatzor assessed:
“The current market size in terms of potential number of clients is 1.6 million customers, and it is projected to reach 4 million customers by 2027.”
Differentiation From The Competition
What differentiates the company from its competition? Hatzor affirmed:
“Parametrix stands apart from our competitors through our proprietary technology and advanced data analytics capabilities, which allow us to understand, model, analyze and ultimately insure cloud risks in a way that no one else can. Our system continuously monitors and collects granular data on cloud performance across multiple metrics, providing us with unparalleled insights into cloud incidents and their impact. This deep understanding enables us to create precise risk models that capture the complexity of cloud downtime.”
“What further differentiates us is how we’ve applied this knowledge to our insurance and reinsurance solutions. By using a parametric trigger, our products offer fast, transparent and automatic payouts, eliminating the traditional claims process and reducing uncertainty for our clients. This approach ensures that businesses can recover quickly from cloud disruptions, backed by solutions specifically tailored to this evolving risk landscape.”
Future Company Goals
What are some of the company’s future company goals? Hatzor concluded:
“Our future goals center on addressing one of the biggest risks facing reinsurers and businesses today — the growing dependency on third-party service providers. We’re committed to continuously enhancing our technology and expanding our data capabilities to help our clients better manage, mitigate and transfer this evolving risk. As the digital landscape evolves, so will our solutions, ensuring that we stay at the forefront of providing innovative and reliable protection against these critical disruptions.”
