2024-02-16 11:19:00
A niche financial tool is making it easier to repair critical ecosystems following natural disasters — and protect at-risk communities from future extreme weather.
The Nature Conservancy announced this week that it has expanded its parametric insurance policy for Hawaii’s coral reefs, guaranteeing a sizable payout if a storm of a certain caliber hits nearby. The idea is now gaining steam in other parts of the world, from Fiji to Mexico.
In Hawaii, the funds would be used to remove debris and reattach broken pieces of coral. The ultimate goal: the long-term preservation of the reefs, which not only carry immense biological, cultural and economic value — but also help protect Hawaiian communities from climate-juiced storms.
“The value of the coral reefs to somewhere like Hawaii is absolutely huge,” said Simon Young of insurance brokerage firm WTW, which created the policy with TNC. “They basically act as a natural sea wall and greatly mitigate the impacts of waves on the coastline” while also supporting the tourism and fishing industries.
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