Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, and Safehub, a provider of seismic sensor and risk management technology, have partnered to launch parametric insurance solution, ShakeNet Parametric. The product combines data from Safehub’s network of sensors, in conjunction with the existing government seismic network, to provide “highly-localised regional shaking maps”. ShakeNet is powered by the Global Earthquake Model (GEM) Foundation’s open-source hazard modelling framework, with LM Re joining GEM as a sponsor. The solution is designed to reduce basis risk for parametric reinsurance policies, in an attempt to better align payout with actual losses. According to the firm, the scalable nature of Safehub’s technology will allow for the deployment of sensors, enabling risk transfer solutions in regions with limited post-earthquake information. Moreover, ShakeNet is also designed for use across large portfolios and is adapted to support public private partnerships (PPPs) or sub-layer reinsurance structures. Head of agriculture and parametrics at LM Re, Jean-Christophe Garaix, believes the product “delivers resilient, science-backed insights that enable faster, smarter earthquake response”. Andy Thompson, CEO of Safehub, adds that its existing sensor networks and deployment in developing markets allow the company to “provide the highest-resolution regional shaking maps anywhere in the world”. He believes the new solution will deliver “a new frontier in earthquake risk management”.
