The Nature Conservancy’s (TNC) Hawaiʻi coral reef insurance policy will pay for damage assessment and reef repairs for the first time since it purchased the US’s first such policy four years ago, following Hurricane Lala’s impacts this weekend, which brought dangerous flooding, strong winds and widespread power outages across the state.
Active since 2022, the parametric policy is designed to provide rapid funding for assessing and repairing coral reef damage caused by hurricanes and severe tropical storms across the Hawaiian Islands.
TNC and WTW launched the parametric coral reef insurance concept in 2022, with Munich Re underwriting the risk for the inaugural Hawaiian arrangement.
The policy was renewed in 2024 with broader coverage and higher potential payouts, increasing the funding available to support reef recovery and the communities that depend on these ecosystems. Munich Re was again selected as the coverage provider from seven competitive bids.
The parametric policy was renewed again in 2025, with Munich Re continuing to play a key role in the programme.
This weekend’s Hurricane Lala is the first storm to trigger the insurance policy, with sustained winds of 65 knots within the covered area. The minimum payout is reportedly $200,000.
TNC explained that although it is the policyholder, disbursement of the payout will be determined collaboratively with the Hawaiʻi Emergency Reef Restoration (HERR) Network.
“These funds will enable the HERR Network—a coordinated statewide coalition of government agencies, scientists, nonprofits and community groups—to assess reefs around the state after the storm and determine next steps to rescue, reattach and repair any damaged corals,” TNC added.
The team will evaluate the damage in the coming weeks and determine the best course of action to catalyse reef recovery.
TNC continued, “Already, the HERR Network has responded to this year’s back‑to‑back Kona Low storms, which caused significant coral breakage and sedimentation across multiple islands.
“HERR Network members conducted rapid assessments and hands‑on restoration on Maui and Oʻahu, removing debris, reattaching broken corals and stabilising reef structures. These actions are vital to prevent further loss in the impacted areas and support the recovery of reefs and the benefits they provide to communities.”
Julia Rose, TNC’s Coral Restoration Program manager in Hawaiʻi and Palmyra, commented, “This is how it’s intended to work. Through the HERR Network we have a coalition of trained emergency reef responders who can respond rapidly in times of crisis.
“Our reefs face many threats that are beyond our ability to address locally, but physical storm damage is an impact we can do something about. By acting quickly to assess and repair damaged reefs, we can give corals a better chance to recover and continue supporting Hawaiʻi’s communities.”
Generous support from the Howden Foundation and TNC is said to have enabled the purchase of the 2026 policy.
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