Liberty Mutual Reinsurance and ICEYE launch parametric wildfire insurance

Liberty Mutual Reinsurance and ICEYE announced the launch of a parametric wildfire insurance solution, reported by Reinsurance News and Artemis. The product uses ICEYE's SAR (Synthetic Aperture Radar) satellite constellation to assess individual properties following a wildfire event. Each insured property is classified as either "destroyed" or "undamaged" against predefined criteria, with results that the companies say can be delivered within hours of an event (Artemis). The binary classification eliminates the need for on-site loss adjusters or subjective assessments, and triggers payouts within days when agreed loss parameters are met (Reinsurance News). The solution will initially be available in the United States and Australia, where wildfire exposure is particularly high, with plans to expand as ICEYE's product scope grows (Artemis).

Wildfire risk has increased in frequency and severity in recent years, driving demand for faster, more scalable insurance settlement mechanisms. Parametric insurance pays out based on objective event parameters rather than loss assessments, reducing settlement timelines and operational costs. The use of SAR satellite data for property-level damage classification represents an applied remote-sensing and data-analytics approach in insurtech, though this product does not disclose use of machine learning models specifically.