The Mexican federal government, through its Sovereign Catastrophe Risk Financing Strategy, has deployed nationwide parametric earthquake and volcano risk insurance, with Liberty Mutual Reinsurance (LM Re), a division of Liberty Mutual Insurance Group, as the primary capacity provider.
The parametric insurance solution, brokered by Augment Risk and domestic broker TBS, reportedly complements Mexico’s long-term catastrophe risk financing strategy and forms part of a broader risk transfer framework aimed at ensuring fiscal resilience and continuity of public services in the aftermath of disasters.
It is powered by ShakeNet Parametric, LM Re’s seismic parameter and risk management technology solution, triggered by Safehub’s Shake Network and powered by the Global Earthquake Model’s (GEM) OpenQuake engine and Safehub’s proprietary sensor network and data.
“The solution provides highly localized shock information, enabling fast, transparent and objective payments while enhancing emergency response and post-event decision-making,” explained Liberty Mutual.
The company continued: “The adoption of Safehub Shake Network highlights the growing importance of high-resolution seismic impact data in sovereign risk transfer programs around the world.
“The insurance also represents the largest deployment of ShakeNet parameters to date, reflecting the growing demand for high-resolution seismic impact data in risk transfer applications, with other large projects currently being developed in markets around the world.”
Jean-Christophe Garaix, Head of Parametric and Agriculture at LM Re, commented: “We are delighted to announce our partnership with the Mexican government to support their parametric seismic programme, which is a testament to the strength of our parametric solutions.”
Andy Thompson, CEO of Safehub, added: “This solution demonstrates how enhanced earthquake monitoring can increase resilience on a national scale.
“By combining dense sensor networks with parametric insurance, we are helping governments access liquidity faster while improving situational awareness when it matters most.”
