HONOLULU (AP) — An environmental group has obtained a $2 million insurance policy on Hawaii’s coral reefs, which is now in effect just in time for an active hurricane season that poses a significant threat to these vital natural resources already under pressure from local climate change.
The Nature Conservancy announced the policy purchase last year, making it the first-ever coral reef insurance in the United States.
The insurance policy, issued by Munich Re, will be triggered by wind speeds of 57 knots (92 kph) if they are close to the reefs. It will provide payouts of up to a maximum of $2 million to facilitate rapid coral reef repair and restoration following storm damage.
The Pacific region is anticipating a “near-to-above normal” hurricane season from June to November, according to the Central Pacific Hurricane Center. This translates to four to seven tropical cyclones in the area, although not all of them are expected to make landfall on the islands.
The policy’s cost is approximately $100,000 and was underwritten by private funders, including the Bank of America Charitable Foundation and the Howden Group Foundation, the charitable arm of the international insurance agency Howden Group, as reported by the Honolulu Star-Advertiser.
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Efforts are also underway to establish reef insurance coverage for the coastal state of Quintana Roo in Mexico and another for the Mesoamerican Reef, which stretches across southern Mexico, Belize, Guatemala and Honduras.
Coral reefs are a crucial component of Hawaii’s nearshore marine ecosystem and play a vital role in the state’s economy. They provide protection to the coastlines from large ocean swells and storm surges caused by tropical storms, which the U.S. Geological Survey values at over $860 million annually.
When considering tourism, fishing, cultural value, and other factors, Hawaii’s reefs are estimated to be worth around $33 billion, according to a study funded by the National Oceanic and Atmospheric Administration.
As a Native Hawaiian, Makale’a Slag, who is involved in community engagement and partnerships for The Nature Conservancy, emphasized the cultural and ancestral significance of coral reefs in Hawaiian tradition and the importance of protecting them.
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