Guide on how to insure a natural asset
Nature provides vital ecosystem services that support people and economies, yet it is vulnerable to disasters like hurricanes and fires. This guide outlines phases and steps to create insurance solutions for natural assets, enabling rapid restoration and risk transfer for sustainable resilience.
Subject Tags
- Policy, Finance, and Markets
- Nature-based solutions
- Coastal
Abstract
Nature sustains livelihoods and economies, reduces risk to people and infrastructure and help us to adapt to climate change (Renaud et al., 2013; Ferrario et al., 2014; Spalding et al., 2014a, b). Nature and the ecosystem services provided constitute an asset for people and the economy. However, nature is also at risk and can suffer severe damages from hurricanes, fires, droughts, oil spills and other natural and anthropogenic events. Sometimes damages can be reversed and repaired, bringing back the ecosystem services that nature provides, but immediate funds and response are required. Transferring the risk of restoring the damages to nature is a sound financial strategy for the beneficiaries and entities responsible for the natural asset. This guide describes the phases and steps to design an insurance for natural assets at risk.
TNC Authors
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The Nature Conservancy