MEXICO TAKES OUT WORLD’S FIRST INSURANCE POLICY ON CORAL REEFS
The Nature Conservancy and the state government of Quintana Roo announced the creation of a Coastal Management Trust, the world’s first insurance policy for a coral reef. The policy aims to protect the Mesoamerican Reef, a 600-mile-long coral reef second only to the Great Barrier Reef in size. The reef is insured under a parametric policy that applies when certain conditions occur; in this case, if a Category 4 or 5 hurricane hits a 37-mi (60 km) stretch of the coast. When the policy is triggered, an immediate payout to repair and restore coral reefs occurs. The value of the insurance policy will not be known until the trust puts it out to bid and secures a contract with an insurer. The policy may be put in place by June 1, the start of the 2018 hurricane season. For the full story, see: https://www.newsdeeply.com/oceans/articles/2018/03/15/premium-protection-why-insurers-are-eager-to-cover-coral-reefs.