Liberty Mutual Re partners with Safehub to launch senor-based parametric insurance solution for earthquake risk
Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, has today announced an exclusive partnership with Safehub, a technology provider in seismic sensor and risk management solutions to offer a market-first, building-specific, sensor-based, parametric earthquake (re)insurance product to clients globally.
Building upon the success of a pilot programme 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, LM Re and Safehub are expanding its reach to offer the solution to clients worldwide.
Safehub's seismic sensor technology captures building-specific real-time data at the policyholder’s building location(s) to trigger parametric (re)insurance policies. The policies are bespoke, offering coverage for specific earthquake event triggers.
Unlike other parametric products, which 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. The parametric product 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.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re, 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.”
Andy Thompson, CEO of Safehub, said:
“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.”
Authored by Liberty Mutual Re
About Liberty Mutual Re
Liberty Mutual Reinsurance is the sole Treaty Reinsurance business for Liberty Mutual Insurance Group (LMIG). Backed by the financial strength and long-term view of LMIG, we provide flexible and wide-ranging solutions that our clients demand; the agility to act quickly; the expertise to craft smart solutions; and a claims service that’s in tune with business’ needs. We have a global network of experts across five underwriting platforms and a comprehensive product range.
Risk is changing and so is insurance. Reinsurance has to be flexible, innovative and tailored to the client’s needs.
We have the energy and innovation of a start-up, combined with an entrepreneurial spirit and the backing of Liberty Mutual Insurance Group, who have been around for over a century. We are committed to bring a world of expertise to every relationship. We are proven collaborative partners and believe in taking a long-term view. We customise our services to suit our clients ever-changing needs.