ISF extends support for the Mesoamerican reef’s climate risk insurance initiative
Nest site selection in sea turtles is influenced by temperature, moisture, and salinity. Turtles can influence the duration of incubation and sex of hatchlings by selecting sites based on the temperature.
The Caribbean coast of Mexico, Belize, Guatemala, and Honduras is often struck by intense cyclones, posing significant risks to lives and livelihoods in the region. The Mesoamerican Reef (MAR) serves as a vital natural barrier, protecting coastal communities from storm surges, beach erosion, and wave-induced damage. To enhance the MAR region's ability to respond to natural disasters, the InsuResilience Solutions Fund (ISF) co-funded the implementation of a parametric insurance solution. Following the successful development and launch of this insurance mechanism, ISF is now extending its support with further premium support.
Climate change and other stressors are placing increasing pressure on the reef, making it more vulnerable to the damaging effects of hurricanes. Moreover, the reef supports essential ecosystem services, such as tourism and fisheries, which are critical to local economies. In response, innovative financing mechanisms like insurance for reefs are emerging. These tools enable faster and more effective restoration and recovery efforts, helping to safeguard the reef and the communities that rely on it.
The project is being implemented by the Mesoamerican Reef Fund (MAR Fund), a regional organisation dedicated to funding and coordinating conservation efforts in the region and acting as the policyholder of the MAR Insurance programme.
Building on its success, the ISF is now extending its support by contributing to premium funding, further strengthening the MAR region's capacity to manage natural disaster events. This ongoing collaboration is set to ensure a more effective and customised approach to disaster resilience in the MAR region.