MAR News

Photo: Juan Carlos Huitrón

 

In the face of climate change, Fondo Acción has successfully developed a parametric insurance mechanism for coral reefs in the Archipelago of San Andrés, Providencia, and Santa Catalina, Colombia. This milestone was achieved through a collaborative effort involving Fondo Acción, the Mesoamerican Reef Fund (MAR Fund), Willis Towers Watson (WTW), and the Ocean Risk and Resilience Action Alliance (ORRAA), with funding support from the Government of Canada, as part of the project Innovative Risk Financing Approaches to Enhance Ecosystem Resilience along the Caribbean’s Coastlines.

“This pioneering insurance mechanism in Colombia, linking science, finance, and community engagement, shows how innovative finance can help safeguard nature while strengthening the resilience of the most vulnerable communities.” Natalia Arango, Executive Director of Fondo Acción.

This initiative represents a significant step forward in ensuring that the Archipelago is better prepared, financially, institutionally, and technically, to protect and restore its coral reefs in the face of climate change.

“It is a privilege to be part of this strategic partnership, delivering an innovative solution that provides coverage for biodiversity in ways traditional indemnity insurance cannot—By developing a parametric structure that helps preserve the ecosystem, particularly the coral reefs that sustain the island’s life, tourism, and economy”- Juanita Blanco, ART WTW Director.

It also marks a major achievement in scaling the MAR Insurance Programme to new geographies where coral reef protection and post-disaster restoration are critical to the resilience of coastal marine ecosystems and the communities that depend on them.

“We are proud to be part of this innovative initiative in Colombia.  Being able to share and transfer our experience has strengthened our collaboration with Fondo Acción, WTW, ORRAA, and AXA, allowing us to expand our work and grow the network of partners working together to boost the resilience of coral reefs and the coastal communities that depend on them”. María José González. Executive Director of MAR Fund.

The project established the technical and human capacity foundations for launching this pioneering reef insurance programme in the Archipelago. It also successfully built a Reef Emergency Response Network, ensuring that local communities are equipped with both the skills and resources to respond to reef damage following extreme weather events.

To guide response efforts, a Reef Response Coordination Committee was established within the Archipelago. In addition, 45 local residents were trained and certified in coral reef repair techniques to carry out emergency post-hurricane interventions. Four of them (2 men and 2 women) obtained advanced certification as reef response trainers, enabling them to further build local capacity and ensure long-term knowledge transfer within their communities.

A streamlined fund distribution mechanism was also developed to ensure rapid disbursement of insurance pay-outs, allowing for efficient and timely deployment of emergency reef response actions.

The success of this initiative was the result of strong coordination and leadership by the local environmental authority, Corporación para el Desarrollo Sostenible del Archipiélago de San Andrés, Providencia y Santa Catalina (CORALINA), with technical support from MAR Fund and WTW, and direct funding from ORRAA, made possible through the financial contribution of the Government of Canada via Environment and Climate Change Canada (ECCC).

“ORRAA’s support of Fondo Acción, MAR Fund and WTW in San Andrés, Providencia, and Santa Catalina provides a prime example of how innovative financing – like reef insurance – can integrate natural assets into disaster risk management. The importance of valuing reefs and mangroves as protective infrastructure cannot be underestimated, helping to safeguard nature whilst building the resilience of coastal communities on the frontlines of climate risk.” Chip Cunliffe. Senior Director, Innovation and Pipeline Development.

As a result of this collaborative effort, Fondo Acción, in partnership with CORALINA and a coalition of key actors—including AXA COLPATRIA and AXA Climate—successfully placed the first reef insurance policy for the Archipelago, which came into effect in June 2025, with funding support from the Blue Action Fund.

“It’s inspiring to see the world finally recognizing the true value of nature, and this coral reef insurance program perfectly embodies that shift. We’re proud to work alongside our partners to make this protection possible. But beyond the product itself, what truly matters is the partnership behind it. Because when genuine collaboration happens, innovative coverage like this becomes a reality, protecting coral reefs that are vital to marine ecosystems and to the livelihoods of coastal communities facing climate change.” Ariana Ospino, Business Developer Latam, AXA Climate.

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About Fondo Acción is a private Colombian fund with 25 years of experience investing in sustainable initiatives that protect nature and promote the well-being of children in Colombia. Its purpose is to enable actions that make it possible to care for the environment and ensure that boys and girls grow up in healthy, safe, and nurturing surroundings.

About MAR Fund

MAR Fund is a regional environmental fund that implements the Reef Rescue Initiative (RRI), whose main objective is to support the long-term ecological and economic viability of the Mesoamerican Reef. This is achieved through capacity building, strategic alliances, risk management instruments, and innovative financial mechanisms. Through the RRI, specifically the MAR Insurance Programme, MAR Fund collaborates with local conservation organizations and government agencies at each insured reef site to strengthen their capacity to implement reef response plans in the aftermath of hurricanes.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

About ORRAA

The Ocean Risk and Resilience Action Alliance (ORRAA) is the only multi-sector collaboration connecting the finance and insurance sectors, governments, multilateral organizations, civil society, and local partners to pioneer finance and insurance products that incentivize investment into coastal and ocean resilience, and through Nature-based Solutions.

The mission, by 2030, is to activate at least USD$500 million of investment to build the resilience of 250 million climate vulnerable coastal people in the Global South.

ORRAA is delivering system-wide change by growing an investable product pipeline and generating the transformative investment instruments, vehicles and policies that contribute to a regenerative and sustainable blue economy. These solutions enable coastal communities and the Ocean to adapt and thrive, creating greater economic, social and cultural resilience.

This project was supported by the Ocean Risk and Resilience Action Alliance (ORRAA) and undertaken with the financial support of the Government of Canada through the federal Department of Environment and Climate Change.

Ce projet a été réalisé avec l’appui financier du gouvernement du Canada agissant par l’entremise du ministère fédéral de l’Environnement et du Changement climatique.

About AXA Climate

AXA Climate, a subsidiary of the AXA group dedicated to climate change adaptation and transition supports sectors such as agribusiness, industry, finance, and the public sector by offering parametric insurance products, consulting services, over 40 hours of online training, and a suite of digital tools for climate projections.

By leveraging science and data, AXA Climate helps companies and public players to tackle key environmental challenges and enables them to implement concrete adaptation and mitigation strategies tailored to their local contexts and specific needs.

Tags: Mesoamerican Reef Rescue Initiative (RRI), Reef Rescue Initiative (RRI)