Liberty Mutual Re, the reinsurance arm of Liberty Mutual Insurance Group, MGA XS Global, and technology provider Safehub, have launched the world’s first sensor-based, parametric reinsurance treaty for earthquake risk.
According to the announcement, this treaty marks a new era of disaster risk management for insurance firms, risk managers and policyholders, as it is one that harnesses real-time building-specific sensor data.
Insurers will be able to use the smartphone-sized sensors provided by Safehub, placed in individual properties to accurately measure the shaking at the site, which will ultimately minimize basis risk and provider faster payouts.
