An Environmental Group Has Taken Out A $2 Million Insurance Policy To Protect Hawaii’s Coral Reefs By Covering Hurricane Damage, Allowing For Quick Reef Repair
In Hawaii, hurricane season runs from June to November. As tropical storms hit the Aloha State, they can cause damage to the vital natural resources that are already at risk of disappearing due to climate change.
To protect Hawaii’s coral reefs, an environmental group has a $2 million insurance policy that will cover hurricane damage and allow for rapid reef repair. The policy was issued last year by Munich Re, a German-based company.
According to The Nature Conservancy, it was the first coral reef insurance policy to be established in the United States. Similar policies for storm-related repairs have also been used in Mexico and Central America.
This year, the policy has been upgraded to cover a larger expanse of the ocean and double the minimum payout.
Recently, The Nature Conservancy, a global non-profit organization, announced the purchase of the latest $106,000 policy.
Like the last one, it aims to fund any reparations needed for coral reefs damaged by hurricanes that touch down on or near the islands in 2024.
The approach will help obtain the money for the reefs to undergo restoration efforts much more quickly than state government agencies can, and time is of the essence when it comes to this issue. Coral reefs comprise much of Hawaii’s ocean ecosystem and are critical to the state’s economy.
Methods such as the insurance policy are becoming increasingly necessary as the impacts of climate change continue to worsen.
Compared to the previous policy, this year’s policy will cover an extra 122,000 square miles around the islands.
Maridav – stock.adobe.com – illustrative purposes only
Additionally, the minimum payout has gone from $100,000 to $200,000. The payout is triggered by certain storm conditions, like when wind speeds reach 57 mph close enough to the reefs.
Anonymous donors, along with the Howden Foundation based in London, paid for this year’s policy. The foundation funds projects that support sustainable solutions for climate change. Last year, the policy cost $110,000, which was several thousand dollars more than the current one.
Since Hurricanes Iwa and Iniki struck the islands decades ago, Hawaii’s coral reefs haven’t suffered much from major storm damage.
But, researchers predict that Hawaii will start to see more storms as the effects of climate change become magnified.
In the wake of the deadly Lahaina wildfires that occurred in August, killing 101 people, conservation groups are beginning to consider policies to help Hawaii handle other environmental threats since they won’t be going away anytime soon.
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