WTW's new parametric policy protects vulnerable South Pacific reefs

The coverage allows for rapid payouts, supporting reef recovery efforts and community assistance activities following cyclones. 

WTW released a new parametric insurance policy aimed at safeguarding the vulnerable coral reef system of the Lau Group in the South Pacific Ocean. 

Comprising sixty islands and islets, the Lau islands face threats from sea level rise, ocean warming, acidification, and tropical cyclones. The innovative insurance product, supported by BHP through social investment funds, is tailored for a subset of the Lau islands. 

ALSO READ: WTW welcomes new head of global services and solutions

Unlike traditional policies covering fixed assets, this parametric insurance allows for rapid payouts, supporting reef recovery efforts and community assistance activities following cyclones. 

The initiative, developed in collaboration with Fiji’s Vatuvara Foundation and Pacific Catastrophe Risk Insurance Company, aims to enhance the resilience of both ecosystems and communities. Initial coverage includes Vatuvara Island, Yacata, and Kaibu, with potential expansion to other sites in the Lau Seascape in the future.