As one of the members of the Sustainable Markets Initiative’s Insurance Task Force, AXA is pioneering the Ocean Risk sector. This report introduces the Ocean Risk and Resilience Initiative, which aims to understand and define ocean risk, at the same time as developing pioneering finance and insurance products that build resilience and reduce the impact of ocean risk on exposed communities.
"Coastal flooding impacts are increasing due to coastal development, population growth, climate change, and habitat loss. Maintaining and regenerating existing coastal ecosystems that help protect people and property is a critical component of disaster risk management and climate adaptation in countries that often lack the financial resources to fund relief and post- disaster recovery efforts."
"AXA XL is working with its scientific partners to develop a ground- breaking Coastal Risk Index (CRI) that integrates the protective benefits of coastal ecosystems into insurance risk models. The Index will calculate physical risk to coastal assets in different projected flooding scenarios up to 2050, with and without coastal ecosystems. It will then measure two further parameters: social vulnerability and the fiscal risk caused by the loss or degradation of those ecosystems."
"The CRI aims to drive a systemic shift in how the insurance industry measures coastal risk in the tropics and strengthens the case for using nature-based solutions to increase resilience and sustainably manage biodiversity."
