HONOLULU (AP) — In a groundbreaking move, an environmental organization has obtained a $2 million insurance policy to safeguard Hawaii’s coral reefs, effective just in time for an anticipated active hurricane season. This initiative comes as these vital ecosystems face increasing threats from climate change and extreme weather events.
The Nature Conservancy announced last year that this is the first-ever coral reef insurance policy in the United States. The coverage, provided by Munich Re, activates when wind speeds reach 57 mph (92 kph) near the reefs, with the potential to deliver up to $2 million for rapid repair and restoration efforts following storm damage.
Preparing for a Busy Hurricane Season
Forecasters from the Central Pacific Hurricane Center anticipate a “near-to-above normal” hurricane season in Hawaii, spanning from June to November. This prediction suggests that the region could experience four to seven tropical cyclones, although fewer may directly impact the islands.
The insurance policy comes at a cost of approximately $100,000, which has been funded by private backers, including the Bank of America Charitable Foundation and the Howden Group Foundation, the philanthropic branch of the international insurance agency Howden Group Holdings.
This innovative insurance strategy follows the establishment of the world’s first coral reef insurance policy in Quintana Roo, Mexico, along with another for the Mesoamerican Reef that stretches across southern Mexico, Belize, Guatemala, and Honduras. Hawaii’s coral reefs are crucial to the state’s nearshore ocean ecosystem and are vital for its economy.
These reefs serve as natural barriers, shielding populated coastlines from powerful ocean swells and storm surges generated by tropical storms, a protective service valued at over $860 million annually by the U.S. Geological Survey. When considering additional factors like tourism, fishing, and cultural significance, Hawaii’s reefs are estimated to be worth more than $33 billion, according to a study funded by the National Oceanic and Atmospheric Administration.
“As a Native Hawaiian, I understand the cultural significance of coral reefs and our ancestral connections to them through the Kumulipo (creation chant),” stated Makale‘a Ane, who is in charge of community engagement and partnerships for the Nature Conservancy. “Living on an island, it is vital that we protect our reefs.”
Source : https://www.usnews.com/news/us/articles/2023-06-12/2m-insurance-policy-in-effect-for-hawaii-coral-reefs-in-time-for-hurricane-season
