The Nature Conservancy has taken a significant step to safeguard Hawaii's coral reefs. It purchased a new insurance policy, offering up to $2 million for storm damage protection around Hawaii's main islands.
This policy is a form of parametric insurance, which promises quick payouts after specific triggers, like storm damage, are met. This approach is gaining popularity as a swift financial response to natural disasters.
The move aligns with a global agreement to preserve biodiversity and discussions at the climate talks in Dubai on financing nature protection. The coverage area has now grown by 314,976 square kilometers. Payouts will start at $200,000, with a $1 million cap per storm.
The policy activates with tropical storm winds hitting 50 miles per hour or more. Although the previous policy was never triggered, climate changes have made a new, more robust policy necessary.
Coral reefs play a crucial role in coastal protection and support the local economy with over $1.2 billion annually. "This can be transformative for communities and ecosystems," said TNC Executive Director Ulalia Woodside Lee. She highlighted the urgency of repairing damaged reefs to prevent coral death.
Similar insurance has covered the Mesoamerican Reef, with payouts after storms. This policy was arranged by WTW and provided by Munich Re, chosen from seven bids. "Parametric insurance is showing its value for natural assets," stated Simon Young from WTW.
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theatre actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
Environment ,
Hawaii’s Coral Reefs Get $2M Insurance Shield
by : Samira Tasneem | Published: February 22, 2024
The Nature Conservancy secures a new insurance policy to protect Hawaii’s coral reefs against storm damage, promising up to $2M.
The Nature Conservancy has taken a significant step to safeguard Hawaii's coral reefs. It purchased a new insurance policy, offering up to $2 million for storm damage protection around Hawaii's main islands.
This policy is a form of parametric insurance, which promises quick payouts after specific triggers, like storm damage, are met. This approach is gaining popularity as a swift financial response to natural disasters.
The policy activates with tropical storm winds hitting 50 miles per hour or more. Although the previous policy was never triggered, climate changes have made a new, more robust policy necessary.
Coral reefs play a crucial role in coastal protection and support the local economy with over $1.2 billion annually. "This can be transformative for communities and ecosystems," said TNC Executive Director Ulalia Woodside Lee. She highlighted the urgency of repairing damaged reefs to prevent coral death.
Similar insurance has covered the Mesoamerican Reef, with payouts after storms. This policy was arranged by WTW and provided by Munich Re, chosen from seven bids. "Parametric insurance is showing its value for natural assets," stated Simon Young from WTW.
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Samira Tasneem
Samira is an Electronics and Communications Engineer by profession, but deep inside, her heart is a nomad! She's a state champion debater, a public speaker, a scriptwriter, a theatre actress, but most importantly — A GREEN CITIZEN! She thinks of herself as a storyteller who thrives on enjoying the life at fullest and telling everyone the tales of life.
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