WTW Expands Its Endangered Coral Reef Assurance Program

Success during the first year of the program has led to its significant expansion to cover additional coral reef sites in the southern part of the MAR, including the Bay Islands in Honduras. This means the size of the now secured reef area is now equivalent to 73,570 football fields, WTW said. When it launched in 2021, the program initially focused on four sites with protected status: Banco Chinchorro, Arrecifes de Xcalak, Hol Chan and Turneffe Atoll.

Munich Re and AXA Climate were selected as capacity providers due to their commitment to nature protection, their expertise in parametric insurance involving public and private stakeholders, and their competitive prices providing the most value for MAR Fund, it said. WTW.

“The protection of marine resources is explicitly subject to Sustainable Development Goal 14,” said August Pröbstl, global head of Munich Re’s non-traditional risk transfer division. “Munich Re’s ambition is to show how insurance can contribute to these goals, while driving innovation and enabling sustainable business development. The MAR Insurance Program is an important milestone and we are proud to contribute to this pioneering solution for the protection of coral reefs.”

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“The development of this innovative impact insurance product is the perfect example of a coordinated and successful international effort to preserve the ocean’s most important habitats,” said Antoine Denoix, CEO of AXA Climate. “That is the blue economy that we need, the economy of developing possibilities capable of improving coastal resilience and integrating local communities.”

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Stretching along the coasts of Mexico, Belize, Guatemala, and Honduras, the MAR is the largest reef system in the Americas. The Inter-American Development Bank estimates that it will provide annual environmental services worth $183 million in fisheries, $3.9 billion in tourism, and up to $438 million in coastal protection.

“The program is a vital step forward in developing comprehensive risk management strategies for the entire MAR, as well as other reefs around the world, and really shows the potential of financial innovation to build resilience in communities. coastal areas that adapt to climate change,” said Rowan. Douglas (pictured above), director of the WTW Center for Climate and Resilience.

“Insurance is an important risk management instrument that will provide immediate funds to repair the damage caused by hurricanes to the reefs, thus contributing to their survival, recovery and long-term provision of their environmental resources,” said María José González. , executive director of the MAR Fund. “MAR Fund and its partner, WTW, in collaboration with MAR authorities, continue to implement the insurance program, providing evidence to more stakeholders that they recognize the value of nature, and finance the emergency response for reef restoration. It cannot be ignored.”

The MAR Program, which is co-financed and implemented by WTW and MAR Fund, is the first multinational collaboration to design and implement parametric insurance to cover the risk of hurricanes in the Mesoamerican Reef.