Editorial: Insurance for coral reefs

Hawaii’s coral reefs are a critical part of our natural environment, supporting myriad marine species and the tourism industry, and serving as a protective buffer for our coastlines.

They also are threatened by climate change, so buying an insurance policy to protect them makes some sense. While it’s a new concept for Hawaii and the U.S., it’s been done elsewhere, in Mexico and Belize.

The Nature Conservancy, an environmental nonprofit, this week announced the unusual arrangement, which would cover damage caused to coral reefs surrounding the main Hawaiian islands by storm winds of 57 miles per hour (50 knots) or greater. High winds from storms or hurricanes generate powerful waves that can break apart corals.

By basing the coverage on wind speed, rather than first going through the time-consuming process of assessing damages, the insurance claim would be paid out more quickly, allowing for divers to begin rapid repairs — an essential condition for preventing damaged reefs from dying off.

The policy, which costs roughly $100,000, would cover up to $2 million in repairs to damage occurring during the 2023 hurricane season (May to November) and end at the conclusion of the calendar year. It will be paid for by private funders.

Of course, our reefs face threats beyond storms. Warmer waters and acidification can cause coral bleaching. Pollution and invasive species like algae can smother reefs. Accidents happen, too: A company this month reached a $1.12 million settlement with the state for extensive reef damage from dredging near the Honolulu Harbor entrance.

And more investment is necessary. It’s encouraging to hear that the Maui Ocean Center Marine Institute, a nonprofit associated with the Maui Ocean Center, wants to construct a privately funded $12 million marine science and research center that would include a coral nursery.

But given the likelihood of stronger storms in our future, it’s reasonable to assume that the weather-related risks to our reefs will grow rather than diminish — an argument for maintaining the insurance program.

Then who should pay? The primary stakeholders, certainly. The state is one; the reefs are a public resource and exist on state land (in fact, the state would need to approve and coordinate repairs). But protecting the reefs shouldn’t be a burden only on taxpayers and environmental do-gooders.

The reefs also protect multimillion-dollar properties along the shoreline by blunting storm surges that otherwise could cause widespread devastation. The owners of those properties — luxury-hotel companies come to mind — ought to contribute a substantial amount as well.