Insurers and other financial institutions form ocean risk alliance

A new alliance between the insurance and finance sectors, governments and environmental organisations is being launched to build resilience to ocean risk, as part of the UN Secretary General's Climate Action Summit,

The Ocean Risk and Resilience Action Alliance (ORRAA) will pioneer insurance and finance products that spur investment in coastal resilience, accelerate research to better understand and manage ocean risk, and inform policy, governance, and public understanding.

“Ocean changes have widespread implications for the lives and livelihoods of billions of people,” said Mr Denis Duverne, chairman of the board of AXA, one of ORRAA’s founding member companies.

“Protecting and regenerating coastal natural capital is critical, and the finance and insurance industries have a key role to play in reducing the exposure and vulnerability of coastal communities and ecosystems. From micro-insurance products for loans incentivising sustainable fishing to a Blue Carbon Resilience Credit giving a carbon and resilience value to mangroves, ORRAA’s outputs will be designed to be replicated across regions exposed to the impacts of ocean changes.” At last month’s G7 meeting, Canadian Prime Minister Justin Trudeau announced that Canada would provide more than C$2m ($1.5m) to help build the alliance.

“The ocean is vital for supporting life on our planet, and ecosystems such as reefs, mangroves, seagrass beds, and salt marshes play a critical role in coastal protection and local economies,” said Ms Karen Sack, president and CEO of Ocean Unite. “By bringing sectors together and significantly increasing investment in our natural capital, we can regenerate and revitalise nature to the benefit of ecosystems and society for generations to come.”

Source: Asia Insurance Review