AXA Climate renews parametric insurance to safeguard marine protected areas

AXA Climate has announced the renewal of parametric insurance coverage for 88 Marine Protected Areas (MPAs) in the Philippines.

In partnership with Blue Alliance Marine Protected Areas and Howden, this initiative bolsters the financial stability of communities and ecosystems alike.

It protects over 90,000 hectares of coral reefs and ensures the livelihoods of 12,000 local fishers, providing them with job security through insurance coverage.

“Designed to provide rapid financial relief, this parametric insurance product activates compensation when a cyclone passes within a 50-km radius, ensuring timely recovery efforts,” AXA explained.

“These include debris cleanup, coral restoration, repairs to MPA equipment and assets (such as vessels and ranger facilities), and covering business interruption for reef-positive businesses like ecotourism and community-based aquaculture,” it continued.

Backed by this robust insurance, Blue Alliance has also launched an impact loan facility, offering early-stage financing to businesses committed to promoting coral reef preservation and restoration.

This initiative addresses conservation and livelihood challenges by offering indispensable early-stage financing, thereby empowering local communities and generating sustainable long-term revenue for MPAs.

“These MPAs, home to species like sharks, groupers, and sea turtles, demonstrate how linking financial resilience with conservation builds a scalable model for climate, economic, and environmental stability,” AXA highlighted.

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