Coral Reef Insurance for Resilient Coastal Communities

Coral Reef Insurance for Resilient Coastal Communities

Indonesia’s coral reefs, the critical asset for coastal resilience, livelihoods, food security, and the future of Indonesia’s blue economy, holds the importance of coastal community dependence on its healthy ecosystems to sustain the fisheries, tourism, and local income. Yet, increasing ocean temperatures, extreme weather, and human pressures continue to threaten these ecosystems, creating growing risks not only for nature, but also for the economic security of coastal communities. With the funding by UK Government and supports of Ocean Risk and Resilience Action Alliance (ORRAA), UNDP Indonesia collaborates with the Ministry of Marine Affairs and Fisheries of Indonesia, local governments, communities, and the insurance sector, the Gili Matra pilot is demonstrating how coral reef insurance can become part of a broader coastal resilience solution. By providing faster financial support for reef response and recovery after climate-related shocks, this initiative helps strengthen local understanding that protecting coral reefs also means protecting jobs, coastal economies, and future generations. The project is not only introducing innovative financing mechanisms, but also building trust, preparedness, and shared responsibility for long-term marine conservation and resilience in Indonesia.