Dangerous trust in cloud insurance

Parametrix Studio
Dangerous trust in cloud insurance

providers on the subject

Cloud insurance specialist Parametrix warns that companies are relying too heavily on the existing insurance of the cloud services they use. In addition, the fear of not being able to act without a cloud is widespread.

Confidence in cloud contingency insurance is high, but not always justified.
Confidence in cloud contingency insurance is high, but not always justified.

(Image: Felix Mittermeier/Pixabay)

A study commissioned by Parametrix from market research firm Momentive shows that executives and decision-makers are aware of the risks posed by cloud outages. The fear of not being able to act without a working cloud is present in every industry. With increasing digitization and highly automated processes, this risk is constantly increasing. The consequences can sometimes be drastic: from stagnant data streams to down systems and disgruntled customers leaving, many things are possible.

As part of the study, 300 decision makers were asked how dependent their business is on the cloud. 95 percent see their company as “highly dependent.” Nearly half see the cloud as a business-critical area that is essential to creating value. A failure would have irreparable consequences. However, they do happen regularly: more than 100 incidents have been recorded in the last three years alone with the three main providers AWS, Microsoft Azure and Google Cloud.

Misconception about quick help

The study also shows that 86 percent of participants incorrectly believe their existing covers will repair their cuts in less than eight hours, regardless of the cause. According to Parametrix, the reality is different: it usually takes between eight and twelve hours and the insured causes only cover part of the risk. “Many companies believe they are well protected by their cyber and E&O insurance policies, even though those policies do not cover most specific breach events and losses,” said Parametrix CEO Yonatan Hatzor.

Confidential Computing also protects data in a public cloud during processing;  There are several solutions for implementation.  (Image: Ivan - stock.adobe.com)

The average amount of damage caused by failures in the cloud is considerable: 56 percent of those surveyed say that they can cause losses of between 25,000 and 100,000 euros per hour. Almost a fifth part even supposes from 100,000 to 500,000 euros per hour. Around a third of the participants believe that they cannot recover the damage caused by a cloud failure. According to the study, this applies in particular to companies in the finance and software sectors, which often rely heavily on cloud providers.

(DNI: 48708242)

Leave your vote

Leave a Comment

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.