Through its sovereign disaster risk financing strategy, the Mexican federal government has implemented a nationwide parametric earthquake and volcanic risk insurance with Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, acting as the lead capacity provider.
In order to enhance the budgetary resources allocated to attend major natural catastrophes, this parametric insurance is supported by ShakeNet Parametric, LM Re’s earthquake parametric and risk management technology solution, triggered by Safehub’s Shake Network and powered by the Global Earthquake Model’s (GEM’s) OpenQuake engine, as well as Safehub’s proprietary sensor network and data. The solution delivers highly localised shaking information that supports rapid, transparent, and objective payouts while enhancing emergency response and post-event decision-making. The adoption of Safehub’s Shake Network underscores the growing importance of high-resolution earthquake impact data in sovereign risk transfer programs worldwide.
The solution complements Mexico’s long standing catastrophe risk financing strategy, forming part of a broader risk transfer framework aimed at ensuring fiscal resilience and continuity of public services after disasters. This insurance also represents the largest ShakeNet Parametric deployment to date, reflecting growing demand for high-resolution earthquake impact data in risk transfer applications, with additional large-scale projects currently being developed in markets around the world.
Jean-Christophe Garaix, head of parametrics and agriculture at LM Re, said: “We are delighted to announce our partnership with the Mexican government to support their parametric earthquake program which demonstrates the strength of our parametric solutions.”
Andy Thompson, CEO at Safehub states: “This 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.”
The deal was brokered by Augment Risk and domestic broker TBS.