Liberty Mutual Reinsurance and Safehub have teamed up to launch a new earthquake insurance product called ShakeNet Parametric. This innovative insurance solution uses detailed earthquake shaking data from Safehub’s network of sensors, backed by Liberty Mutual’s reinsurance support. The partnership aims to offer faster and more accurate payouts after earthquakes, helping those affected recover sooner.
Safehub’s technology stands out because it combines data from its own growing sensor network with government seismic systems. This creates highly detailed shaking maps that show how earthquakes impact specific areas. The system is powered by the Global Earthquake Model Foundation’s OpenQuake engine, a widely respected open-source tool for earthquake hazard analysis. Liberty Mutual Reinsurance has also joined the global earthquake model foundation as a sponsor, showing its dedication to advancing earthquake risk tools.
ShakeNet Parametric is designed to reduce what’s called “basis risk” — the chance that an insurance payout doesn’t match the actual damage suffered. By relying on real shaking data, the product aligns compensation more closely with losses on the ground. The sensor network is flexible, allowing new devices to be installed at customer sites, which means it can quickly be expanded in places where data after a quake might be scarce.
This solution works well for large portfolios and can support arrangements between public and private sectors or reinsurance layers, making it versatile for different markets and insurance needs.
Jean-Christophe Garaix, head of Agriculture and Parametrics at Liberty Mutual Reinsurance, said the collaboration ties together reinsurance know-how with advanced earthquake monitoring. He highlighted that ShakeNet Parametric offers smart, science-based insights that improve how quickly and effectively people can respond to earthquakes.
Andy Thompson, CEO of Safehub, added that their sensor technology produces the most detailed regional shaking maps available globally. Combined with Liberty Mutual’s expertise, this opens new possibilities for managing earthquake risk, including rapid sensor deployment in developing regions.
The partnership was celebrated at a contract signing event in London on April 18, 2024. This collaboration signals a step forward in using data and technology to bring better protection and peace of mind to those living in earthquake-prone areas.