Innovative Parametric Earthquake Coverage for the University of California
The University of California has partnered with Liberty Mutual Reinsurance and Safehub to launch sensor-triggered parametric earthquake coverage. Utilizing 180 Safehub sensors, this insurance solution aims to expedite claims and provide near-real-time damage assessments. This collaboration represents the first such coverage in the U.S., leveraging advancements to protect against earthquake risks while ensuring rapid financial recovery for the university.
The University of California has entered into an innovative partnership with Liberty Mutual Reinsurance and Safehub to implement a cutting-edge parametric earthquake coverage designed to accelerate the claims process for earthquake damage on campus. Recognizing California’s susceptibility to natural disasters such as earthquakes and wildfires, this initiative provides a novel insurance solution that enhances risk management for the university system. Under this agreement, Liberty Mutual Re will serve as the principal insurer, supported by reinsurance from Munich Re, while Alliant and Howden facilitated the transaction. This collaboration marks the inaugural deployment of sensor-triggered parametric earthquake insurance in the United States, following successful implementations in regions including Mexico and the Caribbean. The coverage utilizes a network of 180 Safehub seismic sensors strategically placed across University of California campuses, which continuously monitor peak spectral acceleration (PSA) values. This innovative approach ensures increased precision in assessing earthquake impacts at specific locations, thereby minimizing the basis risk commonly associated with traditional parametric insurance models. As a result, claims can be triggered and resolved swiftly, affording the university timely financial support in the aftermath of seismic events. Additionally, UC will benefit from access to near-real-time data on structural damage, facilitating an enhanced emergency response. Jean-Christophe Garaix, Head of Agriculture and Parametrics at Liberty Mutual Reinsurance, expressed his enthusiasm for the collaboration, stating that it offers “unparalleled protection to earthquake damages.” Andy Thompson, CEO of Safehub, echoed this sentiment, emphasizing the shared commitment to bolster the recovery efforts of the University’s esteemed campuses and their resilience against earthquakes.
In light of California’s increased risk due to high asset values and natural disasters, such as earthquakes, innovative solutions in property insurance are imperative. Parametric insurance options, which provide rapid financial relief based on predefined metrics, are becoming more prevalent. The collaboration between Liberty Mutual Reinsurance and Safehub with the University of California signifies a progressive movement towards harnessing technology to enhance the effectiveness of earthquake coverage, emphasizing the importance of precise data collection through seismic sensors to improve the claims process in a timely manner.
The new partnership between the University of California, Liberty Mutual Reinsurance, and Safehub represents a significant advancement in parametric earthquake coverage, tailored specifically to mitigate the risks associated with seismic activity. By leveraging technology and sensor data, this collaboration not only strengthens the university’s ability to respond efficiently in the event of an earthquake but also sets a precedent for similar future initiatives nationwide. The integration of real-time data into the claims process augments the reliability of indemnifications, underscoring the evolving landscape of insurance in high-risk regions.
Original Source: insurance-edge.net
