You likely use life, health and auto insurance — but what about reef insurance? A 40-mile stretch of the Mesoamerican coral reef off the coast of Cancun, Mexico, soon will be the first in the world with its own insurance policy, piloted by the Nature Conservancy (TNC) and reinsurer Swiss Re AG, which helps protect it and surrounding businesses from climate change-related damage.
The policyholders are the local beachfront hotels and tourism organizations in Cancun and Puerto Morelos, Mexico, that are dependent upon the reef for tourism dollars and storm protection. They will pay policy premiums feeding into the government-monitored Reef & Beach Resilience and Insurance fund and receive reimbursements to repair the reef and beaches when they are damaged by storms and other natural disasters.
This is an excerpt from an article first published by Green Biz. Read the original article here: Cancun’s coral reef receives a health insurance policy.