Liberty Mutual reinsurance goes global with parametric earthquake offer
Liberty Mutual’s reinsurance wing LM Re will take its building-specific, sensor-based parametric earthquake re/insurance product to clients globally after having been satisfied with a test run in Mexico.
LM Re together with seismic sensor technology producer SafeHub finished a pilot programme in Mexico City where the sensor-based solution for parametric payout triggers was put on 23 “strategic locations.”
Sides like the site-specific parametric trigger over the standard reliance on data from public institutions for increased accuracy and, in turn, reduced basis risk when determining payouts, as well as for speeding payouts.
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.”
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