University of California partners with LM Re and Safehub for risk management [Yahoo! Finance]
MUENCHENER RE GP UNSP/ADR (MURGY)
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Source: Yahoo! Finance
This partnership aims to mitigate the risk of earthquake damage across UC campuses, marking the first purchase of sensor-triggered parametric earthquake coverage in the US. It builds upon the deployment of bespoke sensor-triggered policies by LM Re and Safehub in Mexico and the Caribbean. Munich Re provided additional reinsurance capacity, with Alliant brokering the deal. Howden was involved in the placement. The policy's claims are activated and settled based on data from 180 Safehub sensors deployed at various UC sites. These sensors measure peak spectral acceleration values to trigger and finalise claims. The number of sensors being installed at UC exceeds the total number of earthquake sensors installed in all buildings across California. LM Re said this sensor-based solution distinguishes itself from other parametric products that rely on general estimates from public agencies, offering a more precise assessment of earthquake impacts directly at the building site.
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