Explore how the public-private initiative Building Coastal Resilience in Indonesia helped establish the foundations for innovative coastal risk financing through the development of a parametric coral reef insurance solution. 

Led by UNDP in partnership with Indonesia’s Ministry of Marine Affairs and Fisheries (MMAF), with support from ORRAA and funding from the UK Government, the project strengthened the policy environment, designed a tailored insurance mechanism, and built stakeholder readiness to support rapid financing for reef restoration and recovery following extreme sea surface temperature events that can trigger coral bleaching. 

The case study documents the steps taken to build the policy, institutional, and financing foundations needed to align coral reef insurance with Indonesia’s broader Blue Economy and coastal resilience agenda. It also describes the process of designing and validating the insurance solution, while strengthening capacity and engagement across government agencies, regulators, the insurance industry, Marine Protected Area authorities, tourism stakeholders, and local communities. 

The lessons and practical experience generated through the project provide a model that can inform similar initiatives in reef-dependent coastal regions around the world. The study builds on the Lessons Learned and Practical Toolkit reports on Coral Reef Insurance developed under the project in Indonesia.