A subsidiary of Axa XL has announced an insurance agreement for 88 marine-protected areas.

Axa Climate, an Axa Group entity, has renewed the parametric insurance coverage for 88 MPAs in the Philippines, in partnership with Blue Alliance Marine Protected Areas and Howden.

According to a post on Axa Climate’s LinkedIn page, the “initiative enhances the financial resilience of both communities and ecosystems, protecting over 90,000 hectares of coral reefs and securing the livelihoods of 12,000 local fishers, whose jobs are now insured”.

The parametric insurance product activates compensation when a cyclone passes within a 50km radius, ensuring timely recovery efforts, according to the post.

It added: “These include debris clean-up, coral restoration, repairs to MPA equipment and assets [such as vessels and ranger facilities], and covering business interruption for reef-positive businesses like eco-tourism and community-based aquaculture.

“Backed by this robust insurance, Blue Alliance has also launched an impact loan facility, offering early-stage financing for reef-positive businesses.

“This initiative tackles conservation and livelihood challenges by providing much needed early-stage financing, while uplifting local communities and generating long-term income for MPAs.”