Liberty Mutual and Satellite Firm ICEYE Launch Parametric Wildfire Insurance

Liberty Mutual Insurance and space intelligence firm ICEYE have partnered to launch a parametric wildfire insurance coverage that works with satellites.

Liberty Mutual’s parametric wildfire coverage offers scalable protection that complements traditional insurance while ICEYE’s global constellation of Synthetic Aperture Radar (SAR) satellites provides continuous monitoring of wildfire-affected areas.

ICEYE said its satellites capture high-resolution imagery through smoke, at night, and in all weather conditions to generate uninterrupted data collection. Following a wildfire event, SAR imagery is combined with detailed property footprint data and automated machine learning algorithms to deliver an objective, building-level damage assessment.

Each insured property is classified against predefined criteria as either “destroyed” or “undamaged,” with results that could be delivered within hours.

The coverage is designed for a range of clients, including homeowner associations, residential communities, municipalities and public risk pools, as well as owners of critical infrastructure and (re)insurers with residential and commercial property portfolios seeking to reduce their wildfire exposure.

The companies said their approach eliminates the need for site visits, loss adjusters, or subjective assessments. Instead, it enables fast and consistent evaluations at the individual property level, triggering payout procedures within days when agreed parameters are met.

The coverage is initially available in the U.S. and Australia, where wildfire exposure is particularly high, but the two firms said they expect to expand together with ICEYE’s product scope expansion.

They contend that as wildfires increase in frequency and severity, there is a growing need for faster, more responsive risk solutions.

“By pushing the boundaries of technology, we are delivering a new generation of parametric wildfire coverage that is faster, more responsive, and fully data driven,” stated Jean-Christophe Garaix, head of Parametrics & Agriculture at Liberty, in the launch announcement. “Our property wildfire cover is remotely sensed and designed to address the growing threat of wildfires, providing reliable protection alongside traditional insurance that allows for more efficient claims settlement.”

“Built on rapid and verifiable observation data from our SAR satellite constellation, this offering provides quick confirmation when agreed loss parameters are met. The result is fast, precise, and consistent damage assessments at the individual property level, and can be deployed in high-risk areas to support multi-asset portfolios or regional programs,” added Anke Sielker, head of Reinsurance Solutions at Finland’s ICEYE.

ICEYE-built satellite constellations serve customers in defense and intelligence, environmental monitoring, insurance and emergency management. On June 9, the space company announced it raised EUR 450 million ($520 million) in a funding round led by General Atlantic, at a valuation of over EUR 10 billion ($12 billion). It said its production is now doubling from 50 satellites per year to a target of 100 annually by 2028 and beyond.

Liberty Mutual is the ninth largest global property/casualty insurer and generates more than $50 billion in annual consolidated revenue. It has more than 40,000 employees in 28 countries and economies.

Photo: An ICEYE SAR satellite. ICEYE photo.