Can an Innovative Insurance Model Save Some of the World’s Best Waves?

Originally posted on SURFER | By Zander Morton | Last updated Sep 18, 2024 2:14 PM ET

The global value of surfing is in the billions of dollars, and it's growing every year. Some countries, like El Salvador, Australia, and Portugal recognize the importance of its natural resources (i.e. waves) to the economy and are willing to invest in and protect them. In other places, like Indonesia, the government is mostly unaware of how precious the waves are, which is why devastating projects like this one in Bali are too often green-lit.

Of course, waves aren't threatened only by human development. Sea level rise, storm surge, and coastal erosion are changing/destroying new surf spots every year, and by the time we realize the extent they're being damaged, it's often too late.

But what if there was a way to get out ahead of the problem?

According to this recent article from Climate Champions, there just might be. "Save The Waves, an organization deeply committed to safeguarding surf ecosystems, has launched an innovative project that could revolutionize how we think about insurance and environmental protection. By introducing a bespoke parametric insurance model, supported by ORRAA (Ocean Risk and Resilience Action Alliance) the international multi-stakeholder collaboration through funds from the Government of Canada, it is helping protect these vibrant ecosystems."

So, how does it work?

"The parametric insurance model triggers an insurance payout not after, but before disaster strikes – when specific climate conditions are met, e.g. high winds or excessive precipitation," the article continues. "This proactive approach allows communities to secure resources swiftly, minimizing damage and ensuring the continuity of their livelihoods."

While the exact details of the insurance policy — i.e. who pays for the policy, how the payouts work, and what parameters must be met to trigger a payout — are unclear, the concept is rad, and will likely be tailored specifically to each wave/area. For starters, the idea is being implemented in the Oriente Salvaje World Surfing Reserve, a 19km section of El Salvador’s eastern coastline that includes waves like Punta Mango and Las Flores. As we've seen with the Surf City WSL stop, El Salvador is willing to invest heavily in surfing, so it makes sense they'd be the first to take out an insurance policy on its waves.

If successful, the plan is to "protect 1,000 surf ecosystems by 2030 and help give coastal communities the tools they need to value, protect, and manage their own natural resources. It currently monitors over 5,000 surf spots around the world – 24 percent of which are in key biodiversity areas."

While car, home and health insurance can be frustrating (at least in America), this is a type of insurance that we can all get behind.

This article first appeared on SURFER and was syndicated with permission.

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