Skip to content

Insurance for Natural Infrastructure: Assessing the feasibility of insuring coral reefs in Florida and Hawai‘i

Report

Hawaii

Publication date: November 1, 2020

File format: PDF

View resource

This effort assessed the technical feasibility of developing parametric insurance for natural infrastructure in Florida and Hawai‘i, modeled on the world’s first parametric policy for a coral reef system in Quintana Roo, Mexico. This report synthesizes the findings and offers considerations and recommendations on next steps to determine when parametric insurance could provide funds to repair of coral reefs in Florida and Hawai‘i.

Subject Tags

  • Reefs
  • Climate risks
  • Policy
  • Policy, Finance, and Markets

Introduction

Insurance for Natural Infrastructure: Assessing the Feasibility of Insuring Coral Reefs in Florida and Hawaiʻi explores how innovative insurance mechanisms can help finance the repair and recovery of coral reefs that provide critical coastal protection and economic benefits. Produced by The Nature Conservancy with support from the Bank of America Charitable Foundation, the report evaluates the technical and legal feasibility of parametric insurance policies that trigger payouts following damaging events such as hurricanes, marine heatwaves, and stormwater runoff. The study examines stakeholder interest, insurable risks, flood protection benefits, restoration needs, repair costs, premium funding options, and possible policy structures for reefs in Florida and Hawaiʻi. Coral reefs are estimated to prevent hundreds of millions of dollars in annual flood damages while supporting tourism, fisheries, recreation, biodiversity, and local economies. Drawing on lessons from the world’s first coral reef insurance program in Quintana Roo, Mexico, the report demonstrates how insurance could provide rapid funding for post-disaster reef repair, strengthen coastal resilience, engage private-sector investment, and complement broader conservation and restoration efforts.

Suggested Citation

C. Bergh, L. Bertolotti, T. Bieri, J. Bowman, R. Braun, J. Cardillo, M. Chaudhury, K. Falinski, L. Geselbracht, K. Hum, C. Lustic, E. Roberts, S. Young and M. Way. 2020. Insurance for Natural Infrastructure: Assessing the feasibility of insuring coral reefs in Florida and Hawai‘i. The Nature Conservancy, Arlington, VA. 31 pp.

TNC Authors

  • Chris Bergh
    Field Program Director, Florida
    The Nature Conservancy
    Email: cbergh@tnc.org

  • Lesley Bertolotti
    Strategy Manager, Florida
    The Nature Conservancy
    Email: bertolotti@tnc.org

  • Janet Bowman
    Sr. Policy Advisor/Climate Policy, Florida
    The Nature Conservancy
    Email: janet_bowman@tnc.org

  • Jonah Cardillo
    Director of Development, New York
    The Nature Conservancy
    Email: jonah.cardillo@tnc.org

TNC Authors

  • Kim Falinski
    Coastal and Estuarine Scientist, Hawai‘i
    The Nature Conservancy
    Email: kim.falinski@tnc.org

  • Laura Geselbracht
    Sr. Marine Scientist, Florida
    The Nature Conservancy
    Email: lgeselbracht@tnc.org

  • Caitlin Lustic
    USVI Coral Program Manager
    The Nature Conservancy
    Email: clustic@tnc.org

  • Eric Roberts
    Climate and Disaster Risk Finance Sr. Manager
    The Nature Conservancy
    Email: eric.roberts@tnc.org