In a groundbreaking move for earthquake preparedness, Liberty Mutual Reinsurance (LM Re) and Safehub have teamed up with the University of California (UC) to introduce the first sensor-triggered parametric earthquake coverage in the United States.
The innovative policy uses real-time data from 180 seismic sensors installed across UC campuses to automatically trigger claims, significantly enhancing accuracy and speeding up the claims process compared to traditional parametric products.
This collaboration, brokered by Alliant with additional support from Munich Re, aims to bolster UC’s earthquake resilience by ensuring faster payouts and reducing delays in recovery efforts. The use of sensor technology marks a pivotal advancement in parametric insurance, offering a more precise response to earthquake damage.
“We are thrilled to partner with Safehub to provide UC with sensor-based parametric earthquake coverage, delivering unmatched protection,” said Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re. “This partnership builds on the success we’ve seen in Mexico and the Caribbean, and we look forward to expanding this solution globally.”
Safehub’s CEO, Andy Thompson, also expressed enthusiasm for the collaboration, stating, “Together with Liberty Mutual Re, we are excited to work with UC to support earthquake recovery for these prestigious academic institutions.”
Munich Re, a key supporter of the initiative, highlighted the growing importance of integrating sensors in parametric insurance. “Reducing basis risk through sensor technology offers a robust value proposition, bringing parametric and traditional insurance closer together,” noted Michael Roth, public sector practice lead at Munich Re Capital Partners.
This partnership marks a significant milestone in the use of technology to transform disaster response and risk management for large institutions.
David Evans, senior vice president at Alliant Specialty, emphasized UC’s commitment to innovation. “UC’s risk management team continues to push boundaries, and by incorporating sensors into their earthquake insurance program, they’ve gained critical real-time data that is expected to reduce disaster recovery times and costs, enhancing the university’s resilience.”
