San Francisco is home to Safehub Inc., a technological firm. Organizations may get remote, building-specific Damage estimates right after a natural disaster thanks to the company's state-of-the-art internet-connected sensors, data analytics platform, and actionable warning system. Companies can swiftly determine what needs to be done in the event of a disaster, such as an earthquake, and allocate resources accordingly.

We spoke with Andy Thompson, Safehub's cofounder, and CEO, about how the company's Technology is revolutionizing disaster risk management, enhancing existing clients' business continuity plans, and influencing the future of insurance transactions.

Thompson, who was previously the global leader for catastrophe risk and insurance at the engineering company Arup, has extensive experience improving the disaster resistance of the built environment through engineering design and post-disaster recovery. Now he's determined to use cutting-edge technology to drastically improve disaster preparedness everywhere.

Why Did You Start Safehub?

During my early years in the workforce, I focused on using consulting to help clients improve their safety and resilience. To take this to a larger scale, I cofounded Safehub to utilize IoT and data analytics to enhance the catastrophe preparedness of every building in the world. When I discovered that my secondhand car had 67 sensors and the tall building I was in, which was vulnerable to an earthquake and cost $100 million or more, had none, I made the decision to start the company on the spot. That comparison really got to me. That's when they knew they had to take action.

At Safehub, we're striving to make the technology so accessible, useful, and inexpensive that it's used in every community after every natural disaster. One day, we hope to see the world's whole built environment constantly monitored for signs of climate change and other natural calamities. If the necessary technology exists and can be afforded, there's no reason why this can't be the future.

What Specifically Does Your Technology Entail?

Our first offering will aid in the evaluation of earthquake damage. Our data collection is initiated by a cheap, user-installed sensor roughly the size of a smartphone. Depending on the size of the building, we need anywhere from one to three sensors per structure (a few more for complex or very tall buildings).

Our customers only need a minute or two to set up the sensors after we've shipped them to them. Customers have compared the process to that of hanging a picture. Because the sensors communicate with the cloud over cellular, no additional network connections are required. Then, we begin taking measurements of the building's natural dynamics as well as the earthquake's shaking. Analytics and warnings are sent from any building in the globe to any smartphone in the world, and the buildings are monitored around the clock.

In order to determine how a building's basic construction qualities relate to what happens on the ground and inside during an earthquake, we take measurements at both levels. We also describe the building's resonance frequencies (the way it vibrates on its own) and keep an eye out for any shifts. Damage to a building can often be detected by monitoring for shifts in the building's natural vibration frequencies.

Our algorithms analyze this information and then determine the likelihood of events leading to physical damage (represented by green, yellow, and red), monetary loss, and downtime. Clients receive instantaneous text and email notifications, along with detailed, building-specific damage assessments. If structural engineers or others conducting an assessment of the building require more information, we make that available to them as well through our platform.

Can You Give Us a Specific Example of How the Technology Works?

Consider yourself the risk manager for a multinational firm headquartered in the United States that owns and manages multiple properties in Japan. Both your job and home are in Boston. A moderate M7.1 earthquake strikes off the coast of Sendai, Japan at 3 a.m. Boston time (4 p.m. in Japan). Your buildings are in danger, and it affects several of them. Your text message alerting you to the issue will arrive in a matter of minutes. You can see that four structures were damaged, one of which is green (structural damage is improbable) and two of which are yellow (structural damage is conceivable), and one of which is red (structural damage likely).

You'll be one step ahead of the game thanks to this information, which will reach you before any other news outlet or data stream. You notify upper management with an estimate of the impact on the company and inform your insurance of the possibility of loss and downtime so that they can prepare for claims. You work with local teams, who have also been briefed on the situation, to determine which structures need to be evacuated first and how best to do so. As the hours and days pass, data from the Safehub platform aids in the rapid reopening of facilities, thereby minimizing the costs associated with a business interruption.

Are You Replacing Engineering Inspections Following Disasters?

Quite the reverse, in fact. There are two ways in which we're helping engineering inspections along. To begin, we aid in response prioritization by recommending which buildings should be inspected first. And second, we aid in damage assessment with specifics about the site and building impacts. When it comes to damage, especially structural damage, it can be difficult to assess the extent of the problem without the use of our cutting-edge technology. After a major earthquake, engineers need as much data as they can obtain in order to make the best decisions they can. A few of the best structural engineering firms in the world are working with us as partners.

How Does the Venture Capital Community Characterize You?

We operate as an insurtech, proptech, and climate tech-focused SaaS (Software as a Service) IoT (Internet of Things) firm. Famous Silicon Valley/San Francisco VCs have invested in us. The strategic investments from JLL Spark Global Ventures and Hannover Digital Investments are another source of pride for our company (part of HDI Group which includes Hannover Re).

Who Are Your Clients and Target Clients?

Companies in the Fortune 100, the federal government, commercial real estate firms, and insurance companies are among our clientele. Our clients are organizations with various physical assets located in high-risk areas for natural disasters.

How Big Is the Market Opportunity for the Company?

There are installations of Safehub's software all around the world. It can be used in a wide variety of structures, including workplaces, retail establishments, airports, hospitals, schools, and even housing complexes. One-third of the world's buildings represent the potential market for our seismic product.

This will increase to nearly every structure on the planet as we move towards wind, flood, and other climate change consequences. Before the smoke detector became inexpensive and simple to install in the 1970s, they were rarely found in buildings. Nowadays, you can find them almost anywhere. The trend lines are very similar.

How Is This Technology Impacting Insurance Transactions?

Insurers benefit from our services in two ways: first, we help them save money by lowering the number of claims made under business interruption policies, and second, we provide policyholders an additional service that may be bundled into loss prevention.

We are also talking to insurance firms about using our sensor data to create parametrically triggered policies. The idea is to eliminate the lengthy indemnity claims process in favor of a far more straightforward and immediate policy payout trigger. There are presently more generic methods on the market, but installing a sensor within the building will better line the actual damage with the payout. The probability of a loss on the basis of our calculations is decreased.

What Is the Technology Product Roadmap for Safehub?

Our goal is to revolutionize the way in which climate change-related natural disasters are managed. Our mission is to modernize the ways in which communities react to and recover from natural disasters, as well as the ways in which insurance is underwritten, and the ways in which engineers construct and modify structures to withstand hazards like earthquakes, hurricanes, and floods.

We are bridging the gap between risk assessment at the level of a single building and portfolio management through the use of technology. By doing this, we can better incentivize risk reduction and improved risk management by linking the price of risk on a per-building basis to the actual risk.

By providing a financial incentive, we can make the world a safer and more disaster-resistant place.