LM Re and Safehub Team up for Insurtech Earthquake Solution
Liberty Mutual Reinsurance (LM Re), a sector of the Liberty Mutual Insurance Group, in collaboration with Safehub and XS Global, has introduced a pioneering, sensor-based, parametric earthquake insurance solution, marking a significant advancement in risk management and rapid response insurance technology.
The partnership leverages Safehub's innovative seismic sensor technology, which provides real-time, building-specific data crucial for accurately assessing the impact of earthquakes at the insured locations. This capability is a significant shift from traditional parametric products that depend on broader regional data and may not accurately reflect individual property damage, thereby reducing the "basis risk" commonly associated with such policies.
Expanding Global Reach and Enhancing Accuracy
Following a successful pilot in Mexico City, where the technology was implemented at 23 strategic sites, LM Re and Safehub are now poised to roll out this advanced solution globally. The technology not only enhances the accuracy of damage assessments but also significantly speeds up the claims process, offering policyholders quicker indemnification post-disaster and aiding prompt business recovery and emergency response efforts.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re, says: “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, says: “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.”
The initiative is part of a broader movement towards adopting more sophisticated parametric insurance solutions that cater directly to the specific needs and risks of individual policyholders. This strategy not only streamlines the insurance and claims process but also enhances the resilience of businesses and communities against catastrophic events.
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