This case study shows how Indonesia is testing a new type of insurance to protect its coral reefs
This case study shows how Indonesia is testing a new type of insurance to protect its coral reefs.
What it is about –
– Coral reefs in places like Gili Matra (a popular tourist area) are at high risk from rising sea temperatures that cause bleaching.
– A “parametric” insurance product is being designed. It pays out automatically when sea temperatures reach dangerous levels, without needing long damage assessments.
– The money can be used quickly for reef restoration and recovery.
– Partners include UNDP, the UK Government, ORRAA, Indonesian government agencies, and insurers (including Swiss Re).
– The goal is to protect both the reefs and the local communities and tourism businesses that depend on them (worth around US$530 million a year in Gili Matra alone).
Main Message –
Innovative insurance can help coastal communities get fast funding to protect and restore nature when climate risks hit.
