The Guardian | By: Fiona Harvey | 20 July 2017:
Hotels and local government in Cancún will pay premiums, and insurance industry will pay out if the reef is damaged by storms.
A stretch of coral reef off Mexico is the testing ground for a new idea that could protect fragile environments around the world: insurance.
The reef, off the coast of Cancún, is the first to be protected under an insurance scheme by which the premiums will be paid by local hotels and government, and money to pay for the repair of the reef will be released if a storm strikes.
Under the Cancún insurance policy, pioneered by the insurance company Swiss Re and the Nature Conservancy, a US environmental charity, local organisations dependent on tourism will pay in to a collective pot likely to amount to between $1m (£770,000) and $7.5m for the insurance premiums on the policy, and a 40 mile (60km) stretch of reef and connected beach will be monitored. If any destructive storms damage the reef system, the insurer will pay out sums likely to be $25m to $70m in any given year.
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