Introduction
In an era of increasing natural disasters, earthquake preparedness is more important than ever. Recent advancements in real-time monitoring, seismic sensors, and parametric insurance are transforming how businesses and governments manage seismic risk.
The Safehub Webinar, featuring experts from Safehub, Liberty Mutual Reinsurance and the USGS, explored how integrated technologies and innovative insurance models can help close the earthquake protection gap. This article highlights key insights from the discussion, including the role of ShakeMap, sensor-based insurance solutions and what they mean for businesses seeking greater resilience.
The growing need for advanced earthquake risk management
Earthquake response has traditionally relied on structural assessments and regional analysis. However, these approaches either lack the scalability or granularity required for risk management. With the inability to scale structural assessments on one hand and regional information not providing the granularity needed on the other, accurate risk assessment is difficult.
David Wald from the United States Geological Survey (USGS) explained the importance of ShakeMap, a tool that provides real-time, regional earthquake intensity estimates. By combining seismic sensor data, ground motion prediction equations and public reports, ShakeMap enables insurers, governments and businesses to assess earthquake impacts quickly and make informed decisions.
Despite its usefulness for large-scale analysis, ShakeMap has limitations at the individual building level. This creates an opportunity for sensor-based earthquake monitoring, a technology pioneered by Safehub.
The Safehub solution: bringing seismic sensors to every building
Andy Thompson, CEO and co-founder of Safehub, outlined the company’s vision: a world where every building in seismic zones is equipped with real-time sensors to estimate earthquake damage. Safehub’s small, affordable and easy-to-install sensors measure ground acceleration and estimate building damage, offering immediate insights into a building’s post-earthquake functionality.
Safehub’s approach bridges the gap between regional ShakeMap data and engineering walkthroughs, improving earthquake response by:
- Providing near real-time situational awareness – rapid damage estimates allow businesses to prioritise response efforts.
- Ensuring scalability – unlike traditional structural assessments requiring on-site engineers, Safehub sensors automate data collection and analysis.
- Enhancing parametric insurance applications – facilitating faster claims processing and financial recovery.
Safehub sensors have been installed in over 1,200 buildings across 22 countries, recording over 1,500 earthquakes. This data has helped refine damage estimation models and improve earthquake response strategies.
Watch the full webinar
We brought together an outstanding panel to discuss the best sources of information available throughout the world, and where and how these are most effective for different use cases.
Parametric insurance: the next frontier
Traditional insurance models rely on claims adjusters and damage assessments, which can take weeks or months. Such delays can be financially devastating for businesses needing immediate funds for recovery. Parametric insurance offers a more efficient alternative.
Jean-Christophe Garaix, Head of Parametrics at Liberty Mutual Reinsurance, explained how parametric insurance works:
- Instead of assessing physical damage, payouts are triggered based on pre-agreed parameters, such as ground acceleration measurements or ShakeMap intensity values.
- Policies can be customised for individual buildings, reducing basis risk (the discrepancy between losses sustained and insurance payouts).
- By integrating Safehub sensor data with parametric triggers, businesses can significantly reduce basis risk further by measuring what happened at the specific site in question.
Liberty Mutual Re and Safehub have deployed this model in Mexico, the Dominican Republic and California, with early adopters like the University of California system benefiting from tailored parametric earthquake insurance.
ShakeMap vs. sensor-based triggers: choosing the right approach
A key discussion point was whether to rely on ShakeMap data or building-specific sensor data for parametric triggers.
David Wald highlighted that ShakeMap provides a valuable regional view but may lack precision at individual locations due to variations in soil conditions, building design and seismic activity. Jean-Christophe Garaix shared an analysis showing that Safehub’s building-specific data sometimes diverges significantly from ShakeMap estimates, based on the precise nature of the Safehub recordings.
For businesses needing portfolio-level or city-wide insights, ShakeMap is an excellent tool. For those requiring precise, asset-specific coverage, sensor-based triggers can provide a more accurate alternative. This distinction is essential for policyholders selecting earthquake insurance solutions tailored to their risk exposure and financial resilience needs.
The future of earthquake preparedness: integrated solutions
The panelists agreed that seismic synergy is the way forward. ShakeMap and sensor-based solutions used together create a comprehensive earthquake risk management system.
Looking ahead, key advancements include:
- Integration of ShakeMap and a wide range of sensor networks – for example, future collaborations between Safehub and USGS should enhance ShakeMap accuracy.
- Expansion of sensor deployment in underserved regions – Latin America, Asia, and Africa are priority areas for parametric earthquake insurance expansion.
By combining regional hazard assessment (ShakeMap) with hyper-local building-specific insights (Safehub sensors), businesses can optimise their earthquake resilience strategies.
Conclusion
The Safehub Webinar highlighted the transformative impact of combining real-time seismic monitoring, sensor technology and parametric insurance. As earthquake risk increases, businesses must adopt smarter, data-driven solutions to protect infrastructure and financial stability.
For insurers, policymakers and business leaders, the message is clear: embracing seismic synergy is the key to a resilient future. Whether through regional ShakeMap data, building-specific sensors, or innovative parametric insurance policies, leveraging technology can reduce recovery time, financial uncertainty and the overall impact of earthquakes.
Are you prepared for the next big quake? Now is the time to explore innovative solutions and safeguard your assets.
Watch the full webinar
We brought together an outstanding panel to discuss the best sources of information available throughout the world, and where and how these are most effective for different use cases.
