As a result of climate change fears and potential damage to the 40-mile long coral reef off the coast of Puerto Morelos, Mexico, local businesses are paying into a new kind of insurance - a policy for nature. The Reef & Beach Resilience and Insurance Funds, made up of tourism businesses along the stretch of the 700-mile Mesoamerican Reef pays premiums to Swiss Re. “People have been saying that this is going to be an issue in our lifetimes,” said Michael McHugh, president of Riviera Resorts, which owns two resorts on Mexico’s Yucatan Peninsula.
As a result of climate change fears and potential damage to the 40-mile long coral reef off the coast of Puerto Morelos, Mexico, local businesses are paying into a new kind of insurance - a policy for nature. The Reef & Beach Resilience and Insurance Funds, made up of tourism businesses along the stretch of the 700-mile Mesoamerican Reef pays premiums to Swiss Re. It will quickly sort out payouts that can be used to restore the reef in case of a large storm.