Liberty Mutual Re, in collaboration with Safehub, has developed the first sensor-triggered parametric earthquake insurance for the University of California. This innovative policy utilizes 180 sensors across UC campuses to provide real-time data on seismic activity, facilitating expedited claim settlements and enhanced emergency responsiveness.
Liberty Mutual Reinsurance (LM Re) has entered into a strategic partnership with Safehub and the University of California (UC) to implement sensor-triggered parametric earthquake coverage across UC campuses. California’s unique challenges, such as high asset values and seismic activity, necessitate innovative insurance solutions, which this collaboration aims to provide. This groundbreaking policy represents the first sensor-triggered earthquake insurance purchased in the United States, building upon the successful application of similar technologies in regions such as Mexico and the Caribbean. The partnership not only enhances UC’s protective measures against earthquake-related damages but also improves the efficiency of claim settlements. The coverage leverages a network of 180 Safehub sensors strategically installed at various UC locations to monitor real-time seismic activity. These sensors measure peak spectral acceleration (PSA) values, which directly inform the settlement of claims, distinguishing this approach from traditional parametric products that often depend on broader public estimates. The LM Re policy, with support from Munich Re for additional reinsurance capacity and brokered by Alliant in collaboration with Howden, underscores a commitment to modernize the claims process. In the event of an earthquake, UC can expect expedited payouts, access to real-time data on building conditions, and enhanced emergency response capabilities – reducing uncertainty and risks traditionally associated with earthquake insurance claims.
The context of this partnership is situated within California’s reputation as a high-risk state for natural disasters, notably earthquakes. With significant property values and unique environmental risks like wildfires, the need for effective insurance mechanisms has become critical. The deployment of sensor-based insurance policies marks a significant shift toward precision in risk assessment and claims management. In this case, the first implementation of such technology in the United States anticipates enhancing both the resilience and recovery of one of the country’s most important educational institutions, the University of California.
In conclusion, the partnership between Liberty Mutual Re, Safehub, and the University of California signifies a pivotal advancement in earthquake insurance. Utilizing state-of-the-art sensor technology to deliver real-time data and expedite claims processes not only increases accuracy in assessing damages but also strengthens the overall disaster-response strategy. This innovative approach is set to be a model for future insurance solutions in seismically active regions.
Original Source: insurance-edge.net
