Peru quake triggers first Shake Network parametric payout

A magnitude-5.8 earthquake struck Ica, Peru, on May 19. Liberty Mutual Re has paid out on a parametric policy tied to that quake, and the carrier and Safehub describe it as the first claim triggered by Safehub's Shake Network. Artemis first reported the settlement.

ShakeNet Parametric, as the policy is called, blends readings from Safehub's seismic sensor network with the Global Earthquake Model's OpenQuake engine to map shaking at a hyper-local level. At several of the client's locations, the May quake produced enough ground acceleration to cross the trigger. The funds arrived 21 days later. The client bought the policy in October 2025, with Price Forbes Latam brokering, to complement a traditional placement, and the companies say the money will cover immediate recovery costs.

The payout is the first real-world test of the design, and the aim is to cut basis risk, the divergence between an index trigger and actual loss. LM Re and Safehub launched ShakeNet Parametric in August 2025 with that goal. Jean-Christophe Garaix, head of parametrics and agriculture at LM Re, said recent seismic events in Latin America show the potential for parametric cover. Safehub CEO Andy Thompson argued that hyper-localized data gives the policy its precision.

Speed, though, is relative. The money took 21 days to move, hardly the instant settlement that parametric marketing often promises. The certainty may be the real selling point: when a sensor crosses a threshold, there is little room for dispute. That objectivity matters for clients and for the reinsurers writing the risk. Traditional claims adjustment can take far longer, so 21 days is quick even if it is not instantaneous.

The Peru payout is not the only sign of momentum in Latin American parametrics. Earlier this month, the Inter-American Development Bank arranged a $20 million sovereign hurricane swap for Belize, with Swiss Re underwriting — a first for that product. Commercial and sovereign buyers alike want faster liquidity, and a sensor trigger is one way to get it. Whether sensor networks spread to flood or wind remains unconfirmed. The incentive to prove the trigger works, though, is obvious.