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LM Re, Safehub Pay Out First Parametric Earthquake Claim in Peru
A magnitude 5.8 earthquake in Peru triggered a parametric payout from LM Re and Safehub's Shake Network, delivering funds 21 days after the event.
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Liberty Mutual Reinsurance Group and Safehub have paid out on a parametric earthquake policy in Peru, triggered by the magnitude 5.8 tremor that struck Ica on May 19.
The payout, which the companies are calling the world's first earthquake parametric payment activated by Safehub's Shake Network, went to a client that bought the policy in October 2025. Price Forbes Latam brokered the deal.
The structure uses ShakeNet Parametric, a solution from LM Re that relies on Safehub's proprietary sensor network. Under the hood, the Global Earthquake Model's OpenQuake engine processes the shaking data. Because the policy is parametric, the claim was settled 21 days after the earthquake. The funds are earmarked for immediate recovery costs.
Jean-Christophe Garaix, who heads parametrics and agriculture at LM Re, said parametric insurance is seeing growing demand, especially after recent seismic events in Latin America. "The speedy payout in Peru demonstrates how the solution can strengthen disaster resilience," he said.