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

Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, has issued a parametric payout for the 5.8 magnitude earthquake that struck Peru in May and activated Safehub’s Shake Network trigger.

The earthquake that struck Ica, Peru, on May 19th, 2026, generated significant ground acceleration levels across multiple client locations.

The policy, which is being dubbed by both companies as the world’s first earthquake parametric payment triggered by Safehub’s Shake Network uses ShakeNet Parametric, Liberty Mutual Re’s (LM Re) earthquake parametric solution that is triggered by Safehub’s, a provider of seismic sensor and risk management technology. proprietary sensor network.

As per the announcement, the deal was brokered by Price Forbes Latam.

Powered by the Global Earthquake Model’s (GEM’s) OpenQuake engine, and informed by Safehub’s sensor network, the parametric solution delivers highly localised shaking information that supports rapid, transparent, and objective payouts while enhancing emergency response and post-event decision-making.

Both companies also stated that the parametric solution “underscores the growing importance of high-resolution earthquake impact data in commercial and sovereign risk transfer programs worldwide.”

LM Re and Safehub confirmed that the policy was purchased by the client in October 2025 to complement their traditional placement with a quicker response solution in the event of a catastrophe.

However, due to the structure of the parametric solution, the claim was released 21 days after the event.

Both companies explained that the funds received will be used by the client to cover immediate recovery costs.

Jean-Christophe Garaix, head of parametrics and agriculture at LM Re, commented: “Parametric insurance is increasingly being used to support natural catastrophe events. We deliver sophisticated parametric solutions which help clients in their times of need.

“There is a huge potential for parametric insurance right now, particularly after recent seismic events in the LatAm region. The speedy payout in Peru demonstrates how the solution can strengthen disaster resilience.”

Andy Thompson, CEO of Safehub, added: “A parametric insurance policy is only as good as the data driving the trigger. This first-of-its-kind payout validates the real-world impact of Safehub’s Shake Network. By providing hyper-localized shaking data, we are providing the precision and speed needed to best support clients. This is a significant step forward in building a more earthquake-resilient society.”

In August 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.