Liberty Mutual Reinsurance (LM Re), a unit of Liberty Mutual Insurance Group, has teamed up with Safehub to deliver a sensor-based parametric reinsurance offering for earthquake risk on a global scale.
The collaboration aims to leverage Safehub’s seismic sensor technology to trigger parametric insurance policies, offering an accurate assessment of earthquake impacts at specific building locations.
Go deeper with GlobalData
LM Re said the pilot programme in Mexico City, where the sensor-based solution was implemented at 23 strategic locations, has demonstrated the potential of this technology.
Following the pilot, LM Re and Safehub are now extending the offering to clients worldwide, providing bespoke coverage for specific earthquake event triggers.
Safehub’s technology captures the building-specific data, which is used to trigger parametric reinsurance policies.
LM Re noted that this method stands out from other parametric products, which typically depend on general estimates from public agencies, as it offers a more precise evaluation of earthquake effects directly at the policyholder’s site.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThis reduces the basis risk when determining payouts.
The parametric insurance product designed by LM Re and Safehub not only promises increased accuracy but also expedites the claims process, allowing policyholders quicker access to funds post-earthquake.
In addition, the system provides near real-time alerts and rapid damage assessments.
LM Re head of agriculture and parametrics Jean-Christophe Garaix said: “We are delighted to partner with Safehub to provide our clients with sensor-based parametric earthquake coverage, offering unparalleled protection in earthquake-prone regions.
“This partnership underscores our dedication to delivering innovative (re)insurance solutions that address the evolving needs of our customers. Our goal is to provide policyholders with a comprehensive solution, offering quicker access to indemnification in the face of seismic events.”
Safehub CEO Andy Thompson said: “Earthquake damage is site-specific, with neighbouring buildings potentially experiencing vastly different levels of ground shaking. With this partnership, clients gain access to building-specific data, enabling a more precise alignment of (re)insurance payouts with losses, while also supporting emergency response efforts.”
Earlier this month, Liberty Mutual Insurance outlined its strategy to strengthen its international presence by forming a new international insurance business division and merging its operations in the Asia-Pacific region.
