As everyone in the world of insurance knows California is a high risk State; high asset values, wildfires and earthquakes are just some of the factors affecting property coverage. Here’s the word from Liberty who are working with Safehub and the University of California, to try and speed up payouts on earthquake damage occurring on campus.
Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, and Safehub, a technology provider in seismic sensor and risk management solutions have partnered with the University of California (UC) to protect their campuses from the risk of earthquake damage.
The partnership builds on the success of LM Re and Safehub’s bespoke sensor-triggered policies which have previously been rolled out in Mexico and the Caribbean. The UC coverage is the first sensor-triggered parametric earthquake coverage to be purchased in the United States as LM Re and Safehub continue to expand their reach to offer the solution worldwide.
Liberty Mutual Re acted as the insurer, with additional reinsurance capacity from Munich Re. Alliant brokered the deal, with Howden also involved in the placement.
Under this policy, claims are triggered and settled based on measurements from a total of 180 Safehub sensors installed across multiple UC locations. Specifically, peak spectral acceleration (PSA) values observed by Safehub’s sensors at UC locations are used to trigger and settle claims. In total, the number of Safehub sensors being installed across UC campuses exceeds the number of earthquake sensors that the state of California has installed in all buildings statewide.
Whereas other parametric products rely on general estimates from public agencies, this sensor-based solution offers increased accuracy in assessing earthquake impacts at the building site, reducing the basis risk associated with determining payouts. The product expedites the claims process, allowing UC to benefit from quicker access to indemnification in the event of an earthquake. Furthermore, UC will be able to access near-real-time damage information from all 180 sensors deployed to facilitate emergency response.
Jean-Christophe Garaix, Head of Agriculture and Parametrics at LM Re, said: “We are delighted to partner with Safehub to provide the University of California with sensor-based parametric earthquake coverage, offering unparalleled protection to earthquake damages.
“Our goal is to expand our reach to provide policyholders worldwide with this comprehensive solution, building on the success we have had in Mexico and the Caribbean.”
Andy Thompson, CEO of Safehub, said: “Together with Liberty Mutual Re, we are excited to work with the University of California and its individual campuses to support the earthquake recovery of these prestigious academic institutions.”
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