Markets/Coverages: Marsh Exchange Handles Operational Digital Infrastructure Risks

Global insurance broker Marsh announced the launch of Stratus, a property insurance exchange designed to address the complex operational risks of large digital infrastructure projects as they move from construction into operation. Such projects include data centers and associated critical support systems.

Stratus provides access to up to $10 billion in property insurance capacity on a single-placement basis through the global property risk transfer market for the global exposures of US-domiciled companies.

Designed as an insurance exchange, Stratus involves 30 traditional and alternative capital provider participants evaluating each risk individually to determine the most appropriate support for each placement. “This more structured trading environment enables providers to better assess, quantify, and diversify risk and address aggregation concerns, which arise during the operational phase of digital infrastructure projects,” Marsh said in the announcement.

Stratus will also utilize Marsh’s data and analytics and advisory services to help clients procure customized property coverage for their unique needs as they transition their digital infrastructure assets into operation.

Stratus is designed as an extension of Marsh’s construction-phase insurance facility, Nimbus, giving clients a market solution as their digital infrastructure assets enter the next phase of their lifecycle. Stratus and Nimbus can be engaged separately or together, with additional coverages added as client needs evolve.

“As large digital infrastructure projects shift from construction to operation, the associated risks become larger and more complex, driven by multi-billion-dollar campuses, self-generating power systems, and emerging technologies used in processing units and critical equipment,” said Joe Macejak, US Property Digital Infrastructure Leader, Marsh Risk.

He said Stratus is designed to improve the “quality and efficiency of operational digital infrastructure property placements and help clients secure the protection they need to support growth at scale.”

Operational risks relate to threats to keeping systems, data and revenues flowing and might include power and grid issues, cooling system breakdowns, software issues or structural fires or natural disasters affecting data hubs.

Marsh said Stratus will initially launch as a property-focused solution, but it has plans to expand Stratus into other insurance lines, including inland marine, cyber, and casualty, ultimately creating a single point of access for operational digital infrastructure clients.