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Liberty Mutual Reinsurance (LM Re), part of Liberty Mutual Insurance Group, has made a parametric insurance payout to Mexico’s federal government following a magnitude 7.3 earthquake off the country’s southern coast on July 17, 2026.
The event activated coverage under Mexico’s nationwide earthquake and volcanic risk program just weeks after its inception, for which LM Re has served as lead capacity provider 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.
Brokered by Augment Risk and domestic broker TBS, the transaction meets the Mexican government’s goal of ensuring fiscal resilience and continuity of public services after natural disasters.
The policy uses ShakeNet Parametric, LM Re’s earthquake parametric insurance and risk management technology solution, powered by Safehub’s Shake Network and the Global Earthquake Model’s (GEM) OpenQuake engine.
Safehub’s proprietary sensor network reduces basis risk by reconciling estimated predictive models with real ground-motion observations.
During the July 17 earthquake, sensors placed within 80 km of the epicentre gathered vital ground-truth data, allowing for a swift and precise policy trigger.
Supported by a widespread nationwide sensor footprint, the Mexican program marks the largest deployment of ShakeNet Parametric to date.
Jean-Christophe Garaix, Head of Parametrics and Agriculture at LM Re, said: “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, commented: “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.”
The post Liberty Mutual Re completes parametric payout to Mexico following July earthquake appeared first on ReinsuranceNe.ws.
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