The Nature Conservancy has led previous projects resulting in the insurance of coral reefs and mangroves.
Coral Reefs
In 2018, TNC and key partners (including the Mexican state government of Quintana Roo, hotel owners, and the National Parks Commission) came together to pilot an innovative conservation strategy in Quintana Roo, Mexico. Through this pilot study, the first-ever insurance policy was created to protect coral reefs from storm damage. The policy uses a parametric mechanism whereby the claim payment release is triggered when hurricane speeds reach a certain level, allowing the coral reef to be repaired quickly after a storm. The policy helps to maintain the reef and, by extension, the nearby community that relies on it.
Mangroves
In 2020, TNC and the University of California, Santa Cruz (with support by AXA XL) published a report that explained how insurance could be a cost-effective way to help protect and restore mangrove forests in the Caribbean by increasing resilience and protection against coastal flooding. The report suggested combining a parametric insurance policy based on wind speed with a traditional indemnity policy; this way, both short- and long-term restoration actions would be covered.
June 2023. A new study by TNC’s Impact, Finance & Markets, Tackle Climate, Mexico, Florida and Caribbean Teams and partners assessed the feasibility of mangrove insurance policies in Mexico, Florida and The Bahamas. It described damages to mangroves, proposed a post-storm response, and assessed the cost-benefit of the response versus the coastal protection benefits provided by mangroves.
Explore additional reports on mangrove insurance and restoration.