Signal Mesoamerican Reef insured in 2019; 850,000 dollars paid after Hurricane Delta

Summary

According to the report, the first ecosystem ever insured was a stretch of the Mesoamerican Reef off Quintana Roo in Mexico, covered in 2019 by a policy funding restoration after severe storms. When Hurricane Delta hit Mexico a year later, the policy was triggered at once and 850,000 dollars went to repairing the damage. Such ecosystem insurance differs from conventional cover because it pays out automatically, with no further steps, when wind or a hurricane exceeds a preset intensity. Funding typically comes jointly from local governments and exposed private actors such as businesses and NGOs. Coverage has focused on reefs and mangroves because the tools to measure weather damage to them are the most developed. The report presents the case as a precedent for financing nature restoration against extreme weather.