The Mexican government has launched a nationwide parametric earthquake and volcanic risk insurance programme with Liberty Mutual Reinsurance (LM Re) as lead capacity provider.
Data to trigger the parametric cover comes from a network of building-specific sensors provided by earthquake risk management firm Safehub, and the risk is modelled using the Global Earthquake Model’s OpenQuake engine.
LM Re said the solution will complement Mexico’s long standing catastrophe risk financing strategy and is the largest deployment of LM Re’s earthquake parametric and risk management technology solution, ShakeNet Parametric, to date.
Andy Thompson, CEO at Safehub, said that the solution demonstrates how increased seismic monitoring can strengthen disaster resilience at a national scale.
“By combining dense sensor networks with parametric insurance, we're helping governments access faster liquidity while improving situational awareness when it matters most,” he added.