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Willis and CBF launch dynamic parametric coverage for Caribbean coral reefs
The pilot policy, set for the 2026 to 2027 Atlantic hurricane season, covers 1,800 km² of reefs across four countries and provides up to US$150,000 per event for rapid response.
Willis, the insurance and reinsurance broker in the WTW group, and the Caribbean Biodiversity Fund (CBF) have launched a “Dynamic Cat-in-Circle” parametric insurance policy aimed at protecting Caribbean coral reefs. Artemis reports the new structure is designed to reduce so-called “near miss” outcomes common in traditional Cat-in-Circle policies, where payouts are triggered only if a hurricane’s eye enters a fixed boundary. Instead of using a single static area, the policy scales the insured area based on storm size and the radius of maximum winds, with payouts triggered when reefs experience peak wind impacts.
The announcement says the coverage is designed for placement for the 2026 to 2027 Atlantic hurricane season and spans 1,800 km² of coral reefs across the Dominican Republic, Jamaica, St. Lucia, and St. Vincent and the Grenadines. Funding of up to US$150,000 per event is set aside for rapid emergency response.
Capacity for the pilot policy is expected to be provided by Liberty Mutual, with technical assistance and co-financing support from the InsuResilience Solutions Fund (ISF), Artemis adds.