Liberty Mutual Reinsurance (LM Re) and Safehub, a provider of seismic sensor and risk management technology, announced the launch of an earthquake parametric insurance solution, called “ShakeNet Parametric.”
With capacity provided by LM Re and is triggered by the highest-resolution regional shaking data available globally, provided by Safehub.
At the core of this product is Safehub’s ShakeNet, a global solution that combines data from Safehub’s increasingly dense network of proprietary sensors with existing government seismic networks to provide highly localized regional shaking maps.
ShakeNet is powered by the Global Earthquake Model (GEM) Foundation’s OpenQuake engine, the world’s leading open-source hazard modeling framework.
LM Re is also joining GEM as a sponsor, building on Safehub’s long-standing support of the foundation, signaling a shared commitment to innovation in earthquake risk modeling.
“ShakeNet Parametric” reduces basis risk for parametric re/insurance policies, better aligning payout with actual losses, said LM Re, noting that the scalable nature of Safehub’s technology allows for rapid and dense deployment of sensors, enabling risk transfer solutions even in regions with limited post-earthquake information.
Additional sensors can be added at customer locations depending on the existing network.
ShakeNet Parametric is effective for large portfolios and is adapted to support public private partnerships (PPPs) or sub-layer reinsurance structures.
“By combining LM Re’s reinsurance expertise with Safehub’s advanced seismic monitoring and mapping technology, ShakeNet Parametric delivers resilient, science-backed insights that enable faster, smarter earthquake response,” commented Jean-Christophe Garaix, head of Agriculture and Parametrics at LM Re. “Our partnership with Safehub underscores LM Re’s commitment to bringing innovative, data-driven solutions to the evolving needs of our clients.”
“Through our existing sensor networks, and our ability to quickly deploy into developing markets, we are able to provide the highest-resolution regional shaking maps anywhere in the world. In combination with LM Re’s reinsurance expertise, this technology delivers a new frontier in earthquake risk management,” according to Andy Thompson, CEO of San Francisco-based Safehub.
Top photograph: Contract signing at Liberty with Safehub in London on April 18, 2024.
Topics New Markets
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