Liberty Mutual Reinsurance and Safehub have teamed with the University of California to provide a pioneering sensor-triggered earthquake insurance policy. Utilizing 180 sensors to generate precise earthquake data, this innovative approach allows for expedited claims processing and near-real-time damage assessment, strengthening UC’s response to potential seismic events.
In recognition of California’s heightened natural disaster risk, particularly from earthquakes, a strategic collaboration has been established among Liberty Mutual Reinsurance (LM Re), Safehub, and the University of California (UC). This initiative aims to enhance the speed and accuracy of earthquake damage claims processing for the university’s campuses. Liberty Mutual Reinsurance, a component of Liberty Mutual Insurance Group, has joined with Safehub, a provider of seismic sensor and risk management solutions, to develop a parametric earthquake insurance policy featuring sensor-triggered claims. This innovative approach leverages a network of 180 cutting-edge Safehub sensors distributed across UC campuses to monitor seismic activity accurately. Unlike traditional insurance models that rely on generalized data, this system provides precise peak spectral acceleration (PSA) measurements to initiate and settle claims, significantly mitigating basis risk. This advancement not only streamlines the claims process but also equips UC with near-real-time situational awareness for emergency response following seismic events. This policy represents a groundbreaking step in the evolution of insurance in the United States, as it is the first sensor-driven parametric earthquake coverage available domestically, following successful implementations in regions such as Mexico and the Caribbean. The collaboration is brokered by Alliant, with contributions from Howden, and is further supported by reinsurance backing from Munich Re. Overall, this joint venture underscores a commitment to safeguarding academic institutions against the inevitable threats posed by earthquakes, promoting rapid recovery and resilience for the University of California’s campuses.
California’s reputation as a high-risk state for natural disasters necessitates innovative solutions to manage insurance coverage effectively. With rising asset values and recurring wildfire and earthquake threats, traditional insurance models often fall short in responsiveness and precision. Parametric insurance offers a solution by providing payouts based on pre-defined parameters, in this case, seismic activity, allowing for expedited claims processing. This partnership between Liberty Mutual Reinsurance, Safehub, and the University of California demonstrates a significant advancement in earthquake risk management and serves as a model for future insurance products.
The partnership between Liberty Mutual Reinsurance, Safehub, and the University of California marks a significant innovation in the insurance sector, particularly in the realm of earthquake risk management. By utilizing advanced sensor technology, the new parametric earthquake coverage promises enhanced accuracy and efficiency in claims processing. Such initiatives not only protect valuable academic assets but also represent a forward-thinking approach to managing natural disaster risks. This collaboration sets a precedent for similar ventures aimed at enhancing resilience in other high-risk areas.
Original Source: insurance-edge.net
