Liberty Mutual Re explores cyclone data backup

Liberty Mutual Reinsurance has partnered with Celest.Science to explore a backup methodology for parametric tropical cyclone insurance when key weather data is unavailable or delayed.

Parametric policies pay when predefined event conditions, such as a storm’s track or intensity, are met. Disruptions to the data used to verify those conditions can complicate or delay payouts.

The companies will investigate whether multiple independent data sources, combined with physical and statistical modelling, can help reconstruct a cyclone’s characteristics when traditional observations are missing.

LM Re will contribute its parametric risk transfer expertise, while Celest.Science will bring climate modelling capabilities that combine AI and climate physics. The aim is to reduce dependence on any single data source and support timely, transparent settlement.

The methodology remains exploratory. Any use in an LM Re product would require successful technical validation, governance approvals and compliance with the relevant insurance or reinsurance contract.