Liberty Mutual Re makes sensor-triggered parametric earthquake payout in Mexico

Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, has issued a parametric payout to the Mexican federal government for the 7.3 magnitude earthquake that struck Mexico’s southern coast in July, and activated Safehub’s Shake Network trigger.

The earthquake that struck Mexico’s southern coast on July 17th, 2026, triggered coverage under the government’s nationwide parametric earthquake and volcanic risk insurance program within weeks of the policy’s inception, for which LM Re has served as lead capacity provider of since June.

The federal program is overseen by Secretaría de Hacienda y Crédito Público, Mexico’s Ministry of Finance and Public Credit, and administered by Agroasemex, S.A., the Mexican state-owned insurance institution.

Moreover, the policy utilises ShakeNet Parametric, Liberty Mutual Re’s (LM Re) earthquake parametric insurance and risk management technology solution, powered by Safehub’s Shake Network and the Global Earthquake Model’s (GEM) OpenQuake engine.

By deploying Safehub’s propriety sensor network, the Shake Network reduces basis risk by bridging the gap between estimated models and actual ground motion.

Both companies confirmed that during the earthquake event, Safehub’s sensors recorded shaking within 80 km of the epicenter, delivering critical ground-truth to facilitate a precise and rapid trigger.

According to LM Re and Safehub, the Mexico program represents the largest ShakeNet Parametric deployment to date, backed by an extensive nationwide Safehub sensor network.

In addition, the parametric payment also meets Mexico’s government’s goal of ensuring fiscal resilience and continuity of public services after disasters.

As per the announcement, the deal was brokered by Augment Risk and domestic broker TBS.

Jean-Christophe Garaix, Head of Parametrics and Agriculture at LM Re, commented: “We are pleased to support the Mexican government in its disaster preparedness program. This claim payout reflects the effectiveness of how our solution can strengthen disaster resilience at a national scale, providing support when insureds need it most.

“It also showcases the 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.”

Andy Thompson, CEO of Safehub, said: “Ground-truth data is the key to aligning theoretical models with real-world impact and reducing basis risk. We are proud that Safehub’s sensor network and technology enabled a rapid, objective payout for the Government of Mexico. Earthquake resilience depends on actionable, high-resolution data and delivering that precision is at the core of our mission.”

In 2025, LM Re and Safehub launched a new earthquake parametric insurance solution that the pair at the time said will help reduce basis risk for parametric re/insurance policies.