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Willis and CBF launch parametric coral reef insurance for 2026 hurricane season
The pilot policy, backed by Liberty Mutual capacity, covers 1,800km² across four Caribbean countries and uses a dynamic structure to reduce “near miss” non payouts.
Willis, a WTW business, and the Caribbean Biodiversity Fund have launched a first-of-its-kind parametric insurance programme aimed at protecting Caribbean coral reefs as climate linked hurricane threats intensify, according to Reinsurance News.
The pilot parametric policy is set for the 2026 to 2027 Atlantic hurricane season, with Liberty Mutual providing capacity. InsuResilience Solutions Fund is contributing technical assistance and co finance support.
The coverage spans 1,800km² of coral reefs along the coasts of the Dominican Republic, Jamaica, St. Lucia, and St. Vincent and the Grenadines.
Willis says the programme introduces a “Dynamic Cat-in-Circle” structure that adjusts the insured area based on a storm’s size using the radius of maximum winds, in an effort to reduce traditional “near miss” outcomes where a storm narrowly misses a fixed payout zone. Willis’ Alternative Risk Transfer Solutions team developed the pilot with the CBF, and the policy includes concentric circles with lower payouts aligned to a hurricane’s wind footprint.