Skip to main content

Ecosystem insurance begins with Mexican coral reef

by Futures Centre, Aug 22
1 minute read

A 64-kilometre stretch of coral reef along the coast of Mexico will be the first to receive its own insurance policy when a group of beachfront hotels and other local businesses dependent on tourism begin paying premiums to insurance company Swiss Re this September. In the event of a severe storm, Swiss Re will quickly release automatic payouts to these businesses to support them in restoring and rehabilitating damaged portions of the reef.

This insurance scheme has come into being following the recognition that the coral reefs are instrumental in preventing flooding and coastal erosion caused by storms, which constantly create huge costs for affected communities in this stretch of coastal Mexico. The investment of local businesses into ecosystem services such as coral reefs might turn out to be more cost-effective than artificial seawalls: a healthy reef can reduce a wave’s energy by 97% before it reaches the shore.

Details

by Futures Centre Spotted 1927 signals

Have you spotted a signal of change?

Register to receive the latest from the Futures Centre.
Sign up

  • 0
  • 0
  • Share

Related signals

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies page.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our 'Cookies page'.

>