Insurance industry has a key role to play in addressing ocean risk: AXA

A new alliance aimed at building resilience to ocean risk through innovative solutions has been launched at the UN Climate Action Summit, which is a collaborative initiative between the insurance and finance sectors, governments and environmental civil society organisations.

In addition to insurer AXA, Ocean Risk and Resilience Action Alliance's (ORRAA’s) founding members include Ocean Unite, the Global Resilience Partnership, and the Government of Canada. Canadian Prime Minister Justin Trudeau announced at last month’s G7 meeting that it would provide initial support of more than C$2 million ($1.51 million) to help build the alliance.

ORRAA’s early work will include developing innovative and scalable projects to build resilience in the regions and communities that need it the most. It aims to pioneer ground-breaking finance and insurance products that unlock investment in coastal resilience; accelerate research to better understand and manage ocean risk; and inform policy, governance and public understanding.

Denis Duverne, chairman of the board of directors of AXA, said: "Ocean changes have widespread implications for the lives and livelihoods of billions of people. Protecting and regenerating coastal natural capital is critical, and the finance and insurance industries have a key role to play in reducing the exposure and vulnerability of coastal communities and ecosystems.

"From micro-insurance products for loans incentivising sustainable fishing to a Blue Carbon Resilience Credit giving a carbon and resilience value to mangroves, ORRAA’s outputs will be designed to be replicated across regions exposed to the impacts of ocean changes."

Karen Sack, president and CEO of Ocean Unite, added: "The ocean is vital for supporting life on our planet, and ecosystems such as reefs, mangroves, seagrass beds, and saltmarshes play a critical role in coastal protection and local economies. By bringing sectors together and significantly increasing investment in our natural capital, we can regenerate and revitalise nature to the benefit of ecosystems and society for generations to come."

Deon Nel, CEO of the Global Resilience Partnership, said: "The Alliance provides a powerful opportunity for a diverse and influential set of stakeholders to join forces in developing innovative solutions to ocean risk whilst also helping to close the protection gap in emerging economies. The Alliance brings together the knowledge, innovation and political will to realise a truly transformative, global response to ocean risk."

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