Liberty Mutual Reinsurance (LM Re), the reinsurance division of Liberty Mutual Insurance Group, has signed an exclusive partnership with Safehub, a technology provider in seismic sensor and risk management solutions, to offer a building-specific, sensor-based, parametric earthquake re/insurance product for global clients.
The pilot programme was launched in Mexico City, where the sensor-based solution has already been rolled out for 23 strategic locations to facilitate rapid and accurate payouts to policyholders.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re, commented, “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’s seismic sensor technology captures building-specific real-time data at the policyholder’s building location to trigger parametric re/insurance policies. These policies are bespoke, offering coverage for specific earthquake event triggers.
The standout quality of this parametric product is that it doesn’t rely on general estimates from public agencies. This sensor-based solution offers increased accuracy in assessing earthquake impacts at the building site and therefore reduces the basis risk associated with determining payouts.
It also expedites the claims process and policyholders benefit from quicker access to indemnification in the event of an earthquake. Furthermore, policyholders will receive near real-time alerts and rapid damage assessments to facilitate emergency response and business recovery efforts.
Andy Thompson, Chief Executive Officer, Safehub, concluded, “We are excited to announce our exclusive partnership with LM Re. 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.”
