economy
Surfing’s big break: how climate crisis insurance may save El Salvador’s waves
Fearing that extreme weather threatened its epic breaks, Oriente Salvaje is piloting the first surf insurance policy to protect livelihoods and ecosystems
TL;DR
- Climate change is increasing the frequency of intense storms, threatening El Salvador's Oriente Salvaje surf breaks and local economy.
- Oriente Salvaje, a region dependent on surf tourism, is piloting the first parametric insurance policy for surfing to mitigate climate change impacts.
- Parametric insurance offers rapid payouts triggered by specific weather thresholds, unlike traditional insurance.
- The policy uses rainfall data as the trigger, based on research showing a correlation between heavy rainfall, storm intensity, and reduced surfer visitation.
- Local businesses surveyed reported that an average of 70% of their income depends on surf tourism.
- Save the Waves is collaborating with Willis Towers Watson to develop this bespoke financial model, with a pilot planned for June.
- Future plans include incorporating payouts for ecosystem restoration, such as rebuilding coastal mangroves.
- Challenges include building an insurance culture in El Salvador and funding the premiums, with hopes for government support.