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Case Study

Coral Reef Insurance Policy – Hawaii

COUNTRY/REGION

United States

START - END DATE

2024 - Ongoing

REALM

Marine

Hawai’i’s new policy covers all reefs across the main Hawaiian islands, covering an area of 314,976 square miles. It covers both hurricanes and tropical storms given the latter’s frequency in Hawai’i. The maximum payout total is $2 million over the year-long policy period, and $1 million per storm, underwritten and provided by Munich Re. The minimum payout has doubled to $200,000, an amount that enables a more meaningful post-storm response. The policy is triggered when tropical storm winds of 50 knots or greater occur in the core of the coverage area. In the event of a storm, the predetermined disbursed amount is distributed with advice from TNC as well as the Division of Aquatic Resources to enable quick damage assessment and repair.

Insurance trigger type

The mechanism by which an insurance payout or financial response is activated

Parametric/Index

Insurance scheme target

Beneficiary of Insurance Scheme

Local Communities

Insurance scheme developer

The type of institution(s) providing insurance or guarantees

Private

Insured risk

The primary category of risk addressed or managed by the insurance solution.

Physical Risk to People/Assets/Economic Activity, Risk to Natural Assets and Ecosystems

Insurance product type

Adapted from UNEP FI framework subcategories

Insurance of natural assets