Liberty Mutual Re and Safehub have partnered with the University of California to offer the nation’s first sensor-triggered parametric earthquake insurance. Utilizing 180 seismic sensors across UC campuses, this innovative policy enables faster claim payouts based on real-time earthquake data, enhancing protection against seismic damage while streamlining recovery processes.
In light of California’s susceptibility to natural disasters, particularly earthquakes, Liberty Mutual Reinsurance has collaborated with Safehub and the University of California (UC) to implement a parametric earthquake insurance plan. This innovative insurance solution utilizes a network of 180 seismic sensors deployed across multiple UC campuses to ensure accurate and timely claims processing for earthquake-induced damages. The partnership introduces the first sensor-triggered parametric earthquake insurance in the United States, building upon the prior successes seen in the Caribbean and Mexico. This insurance product promises quick payouts based on real-time data from Safehub’s sensors, which measure peak spectral acceleration (PSA). Unlike traditional insurance methods that depend on generalized estimates, this approach offers enhanced accuracy and minimizes the risk involved in payout determinations. With reinsurance support from Munich Re and brokerage assistance from Alliant, the UC’s insurance coverage represents a significant advancement in how earthquake risks are managed, allowing for expedited claims, quicker access to indemnification, and better emergency response capabilities, all grounded in real-time sensor data. Jean-Christophe Garaix from LM Re expressed enthusiasm about this opportunity to extend their parametric solutions globally, while Andy Thompson of Safehub emphasized their commitment to aiding the University of California with potential recovery from seismic events.
California faces numerous challenges due to its geographical susceptibility to seismic activities, wildfires, and intense property values. As such, the need for effective and reliable earthquake insurance is critical for safeguarding property and ensuring swift recovery in the aftermath of disasters. The introduction of parametric insurance products, particularly those utilizing advanced sensor technology, represents a significant step forward in addressing these challenges, offering a more precise method for quantifying damage and facilitating faster claims processes. The recent partnership involving Liberty Mutual Re, Safehub, and the University of California demonstrates a pioneering approach to risk management in the context of earthquake coverage in the United States, leveraging cutting-edge technology to enhance the efficiency and effectiveness of traditional insurance models.
The collaboration between Liberty Mutual Reinsurance, Safehub, and the University of California marks a pivotal moment in earthquake insurance, employing advanced sensor technology to improve the accuracy and speed of claims related to seismic events. This initiative not only provides enhanced protection for the university campuses but also sets a new precedent for parametric insurance solutions across the nation, paving the way for future developments in risk management and disaster recovery.
Original Source: insurance-edge.net
