Marine Protected Area Insurance policy

AXA Climate, Howden, and Blue Alliance Marine Protected Areas partnered in 2023 to develop a parametric business interruption insurance product protecting Marine Protected Areas (MPAs) that manage vulnerable coral reef ecosystems. The product triggers compensation within days of a cyclone passing within a 50km radius, based on meteorological data from government agencies. Payouts fund debris cleanup, coral restoration, repair of MPA equipment and assets such as vessels and ranger facilities, and reimburse operating losses from reef-positive businesses including ecotourism and community-based aquaculture. The programme initially covered two sites: the Turneffe Atoll in Belize (132,000 hectares, 1,000+ fishers) and North Oriental Mindoro in the Philippines (90,000 hectares, 12,000+ fishers), with Howden financing the first year’s premiums. In October 2024, the coverage was renewed for 88 MPAs in the Philippines. Blue Alliance has also launched an impact loan facility backed by this insurance, offering early-stage financing to businesses committed to coral reef preservation and restoration.