Innovative Parametric Earthquake Coverage for University of California

Liberty Mutual Reinsurance and Safehub have partnered with the University of California to introduce the first sensor-triggered parametric earthquake coverage in the United States. This innovative insurance solution features 180 sensors that provide real-time data to expedite claims and improve accuracy in assessing earthquake damage, representing a significant advancement in managing earthquake risks in California.

Liberty Mutual Reinsurance (LM Re) has partnered with Safehub and the University of California (UC) to implement a pioneering parametric earthquake coverage for its campuses, addressing the significant earthquake risks that California faces due to high asset values and natural disasters. This innovative insurance solution utilizes advanced technology in the form of seismic sensors to expedite claims processes and enhance the accuracy of damage assessment. Utilizing a network of 180 Safehub sensors strategically installed across multiple UC campuses, the coverage hinges on observed peak spectral acceleration (PSA) values recorded during seismic events. Notably, the number of Safehub sensors deployed is greater than the total earthquake sensors installed statewide in California, demonstrating the commitment to precise measurement and timely response. This sensor-triggered parametric coverage, which previously found success in Mexico and the Caribbean, represents a first for the United States, setting a precedent in the use of technology in earthquake risk management. The collaboration aims to provide more accurate, quicker claims settlements, allowing the University of California to respond effectively and efficiently to earthquake incidents.

The increasing frequency of wildfires and earthquakes positions California as a high-risk state regarding property insurance. Traditional insurance methodologies often rely on generalized data from public sources, which can lead to ambiguity in claims assessment post-disaster. In contrast, the partnership between Liberty Mutual Re, Safehub, and the University of California seeks to revolutionize earthquake coverage through the deployment of sensor technology that provides real-time monitoring and specific data for accurate claims processing. This approach not only benefits the university but could serve as a model for future insurance products in disaster-prone areas.

The strategic collaboration between Liberty Mutual Re, Safehub, and the University of California marks a significant advancement in earthquake insurance coverage, utilizing sensor-driven data to enhance claim accuracy and expedite payout processes. This innovative approach not only serves the immediate needs of the university but also sets the stage for future insurance solutions in similar high-risk environments. Such initiatives underscore the importance of leveraging technology to improve risk management and emergency response in the wake of natural disasters.

Original Source: insurance-edge.net