Liberty Mutual Re & Safehub support parametric earthquake & volcanic insurance for Mexico

Liberty Mutual Reinsurance (LM Re), the reinsurance arm of the insurance group, and Safehub, a provider of seismic sensor and risk management technology, have partnered to provide the Mexican federal government with a new nationwide parametric earthquake and volcanic risk insurance solution.

The initiative is part of Mexico’s sovereign disaster risk financing strategy and marks a significant expansion of LM Re and Safehub’s sensor-driven solutions.

The solution is supported by ShakeNet Parametric, LM Re’s earthquake parametric and risk management technology solution, triggered by Safehub’s ShakeNet Parametric, and powered by the Global Earthquake Model’s (GEM) OpenQuake engine.

By utilising Safehub’s proprietary sensor network and data, the program delivers highly localised shaking information. This supports rapid, transparent, and objective payouts while enhancing emergency response and post-event decision-making

Both companies observed that the adoption of Safehub’s Shake Network underscores the growing importance of high-resolution earthquake impact data in sovereign risk transfer programs worldwide.

The deal was reportedly brokered by Augment Risk, the risk capital and reinsurance solutions broking firm, and domestic broker TBS.

In addition, this new solution complements Mexico’s long-standing catastrophe risk financing framework aimed at ensuring fiscal resilience and the continuity of public services post-disaster.

We recently reported that the Mexican government finalised its main natural disaster protection for the coming year, doubling its parametric catastrophe insurance arrangement to approximately US $575 million for 2026 into 2027.

However, it has not yet been confirmed whether this new earthquake and volcanic risk program is part of that specific renewal or entirely additional to it.

Notably, this new solution also represents the largest ShakeNet Parametric deployment to date, reflecting a surging global demand for high-resolution earthquake impact data in risk transfer applications, with additional large-scale projects currently being developed in markets across the globe.

Both Liberty Mutual Re and Safehub are renowned leaders in this space. Back in 2023, the firm’s teamed up on a parametric reinsurance treaty for earthquakes that takes its trigger from installed sensor data provided through Safehub technology.

Then in 2024, both firms partnered up again to deliver its sensor-based parametric earthquake re/insurance product to global clients.

And then in 2025, LM Re and Safehub updated its parametric quake solution to help reduce basis risk for parametric re/insurance policies.

Jean-Christophe Garaix, head of parametrics and agriculture at LM Re, commented: “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, said: “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.”