Coral reefs fringing the Caribbean coastline are critical natural defences against some of the region’s most pressing climate threats, including sea level rise, storm surges, beach erosion, and wave damage. Beyond their protective function, reefs underpin the livelihoods of millions, particularly in vulnerable communities that rely on reef-related tourism and fisheries for employment, income, and sustenance. But despite their immense value, coral reefs remain undervalued and underfinanced, especially in the wake of extreme weather events, where public resources tend to focus on grey infrastructure and property restoration rather than natural ecosystems.
To tackle these challenges, the InsuResilience Solutions Fund (ISF) is supporting the development of a regional reef insurance programme, led by the Caribbean Biodiversity Fund (CBF). Acting as the insurance policyholder, CBF will coordinate post-hurricane reef response efforts with the support of four National Conservation Trust Funds (NCTFs) in the Dominican Republic, Jamaica, Saint Lucia, and St. Vincent and the Grenadines, which will serve as payout distribution partners. These NCTFs will channel funds to local organisations responsible for carrying out rapid reef restoration activities.
On the supply side, global (re-)insurance broker Willis Towers Watson (WTW) will lead on product design, marketing, placement, and claims management. The MAR Fund will contribute strategic and technical expertise to ensure the solution is ecologically grounded and regionally tailored.
The objective of the project is to establish an efficient, sustainable mechanism for financing post-storm reef restoration. This shock-responsive solution will provide rapid liquidity to enable immediate response activities at reef sites across the Caribbean. Once a hurricane reaches a predefined windspeed threshold near an insured site, at which coral damage is highly likely, a payout will be automatically triggered. CBF will then distribute funds via its regional NCTF network to facilitate timely intervention and minimise long-term ecological and economic losses.
The insurance product will be tailored to local reef response plans, developed in conjunction with newly established “Reef Response Committees” in each focus country. These committees will ensure long-term, locally led governance of reef restoration efforts. The initiative will also include in-country reef response training for at least 80 participants, and be supported by the “Network of Allies,” a multi-stakeholder platform aimed at mobilising civil society and private sector backing.
Additionally, the programme will explore how payouts could be extended to provide short-term social protection, such as compensating fishers during temporary no-take periods, to support both reef recovery and community resilience after hurricane events.
By enabling rapid reef restoration, this insurance solution will protect not only ecosystems but also the essential services they provide – coastal protection, food security, income, and tourism – safeguarding the wellbeing of vulnerable Caribbean communities in the face of intensifying climate risks.
Managed by Frankfurt School
GRMA hosted by ISF
