Lockton and Parametrix to launch SLA insurance for data center market
Lockton, a privately held insurance brokerage, has partnered with Parametrix, a provider of digital business interruption risk solutions, to launch Service Level Agreement (SLA) breach coverage to the data center market.
The pair explained that the coverage delivers immediate financial compensation in the event of an SLA breach, based on predefined violations of SLA terms.
This solution aims to unlock capital, reduce operational risk, and strengthen financing terms for data center operators, developers, investors, and tenants.
The initiative is backed by leading syndicates at Lloyd’s of London, as the parametric coverage addresses the rising demand for financial protection against performance risk in digital infrastructure.
The insurance solution provides essential coverage that, according to the pair, improves creditworthiness, lowers interest rates, and enhances investor confidence.
<!–
–>
Currently, the SLA insurance delivers value across the data center ecosystem, which aims to help developers secure more attractive financing terms by mitigating downtime risk through insured SLA guarantees. It will help operators unlock escrowed funds, reduce borrowing costs, and enhance service reliability.
Meanwhile, investors stand to gain greater financial certainty and faster recovery in downtime scenarios, and finally, the coverage aims to help tenants benefit from stronger SLA-backed contracts, reinforcing trust and continuity.
The strategic partnership is built on deep sector expertise, as Parametric SLA insurance is available and underwritten through Lockton, which has deep data centre-specific expertise across every area of the data center asset lifecycle, including project financing, construction, operations, and divestment.
Through this SLA offering, Lockton underwrites and delivers an actionable strategy that protects digital infrastructure and supports data center development by enabling project funding for both the buildout and operational phases.
Rick Wong, Head of Insurance, Parametrix, commented, “We’re excited to partner with Lockton to offer SLA insurance to the data center ecosystem. As uptime requirements and financial scrutiny grow, availability is no longer just a technical issue, it’s a strategic and financial risk. 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.”
Preet Gill, Executive Vice President and Technology Risk Practice Leader at Lockton, added, “This solution addresses one of the most acute financial pain points the data center industry is facing today: downtime-related SLA exposure.
“It’s a prime example of how our team combines deep sector expertise with innovative insurance structures to deliver immediate, measurable value. We’re proud to offer a product that directly strengthens our clients’ capital strategies and operational resilience.”
Trevor Smith, Senior Vice President and Global Technology Risk Practice Managing Director at Lockton, added, “As our data center clients seek more robust risk management solutions, this offering provides a level of protection not currently available in the insurance marketplace.
“Through this facility, our clients benefit from access to Lockton’s top-tier data center risk experts, combined with Parametrix’s comprehensive support to accurately assess risk and ensure fast, transparent claims payments.”
The post Lockton and Parametrix to launch SLA insurance for data center market appeared first on ReinsuranceNe.ws.
Lockton, a privately held insurance brokerage, has partnered with Parametrix, a provider of digital business interruption risk solutions, to launch Service Level Agreement (SLA) breach coverage to the data center market. The pair explained that the coverage delivers immediate financial compensation in the event of an SLA breach, based on predefined violations of SLA terms. This…