The first sensor-triggered earthquake coverage in the US
Liberty Mutual Reinsurance (LM Re) and Safehub have partnered with the University of California (UC) to provide sensor-triggered parametric earthquake coverage, marking the first such coverage in the US.
The policy utilizes 180 Safehub seismic sensors across UC campuses to trigger claims based on real-time data, offering enhanced accuracy over traditional parametric products. This reduces the risk of delayed payouts and speeds up the claims process. The deal, brokered by Alliant with additional support from Munich Re, aims to improve UC’s earthquake preparedness and resilience.
“We are delighted to partner with Safehub to provide the University of California with sensor-based parametric earthquake coverage, offering unparalleled protection to earthquake damages. Our goal is to expand our reach to provide policyholders worldwide with this comprehensive solution, building on the success we have had in Mexico and the Caribbean.” – Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re.
“Together with Liberty Mutual Re, we are excited to work with the University of California and its individual campuses to support the earthquake recovery of these prestigious academic institutions.” – Andy Thompson, CEO of Safehub .
“Munich Re is supporting and driving innovation in parametric risk transfer across the globe. Reducing the basis risk by using sensors in parametric insurance provides a robust value proposition. It is another step towards a growing convergence of parametric and traditional insurance.” – Michael Roth, public sector practice lead at Munich Re Capital Partners.
“UC is an organisation built on innovation and continuous improvement. UC’s risk management team fully embraces this approach, always seeking new ways to innovate and improve upon its programs. By incorporating sensors into the earthquake insurance placement, they have gained real-time, critical building data across all campuses and med centers. This is expected to reduce disaster recovery times and costs and enhance the university’s resiliency.” – David Evans, senior vice president at Alliant Specialty.
