A race against time to rescue a reef from climate change

By Catrin Einhorn and Christopher Flavelle

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The race to repair the reef is more than an ecological fight; it’s also a radical experiment in finance. The reef could be the first natural structure in the world with its own insurance policy, according to environmental groups and insurance companies. And Hurricane Delta’s force triggered the first payout — about $850,000 to be used for the reef’s repairs.

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Environmentalists and insurance companies behind the effort hope it becomes a model for protecting other far-flung coastlines, whether in Florida or Indonesia, insuring not just coral reefs but also mangroves, salt marshes and other natural barriers to storms. These nature-based defenses protect coastal properties and biodiversity all at once.

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Some scientists and environmentalists point to philosophical and practical concerns. They protest that the policy reduces the reef to a commodity. It diverts money to private companies that could instead be spent directly to protect the local people and environment. It can’t address longer-term threats from climate change that are killing the reef anyway.

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