El Salvador launches first surf-risk insurance
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- El Salvador is piloting the world’s first surf-risk parametric insurance in the Oriente Salvaje region, with payouts triggered by extreme rainfall to support climate-vulnerable surf tourism businesses.
- Save the Waves partnered with local leaders and Willis Towers Watson to design the insurance model, leveraging 40 years of rainfall data and 10 years of surfer visitation records to identify the trigger mechanism.
- Rodrigo Barraza co-founded the Oriente Salvaje tourism association in 2004 and led the campaign to secure its 2024 designation as a World Surfing Reserve, strengthening the case for climate protection funding.
- Willis Towers Watson determined that accumulated rainfall is the most robust single trigger for payouts, based on data showing a direct link between heavy storms and drops in surfer visits.
- Local businesses in Oriente Salvaje reported that 70% of their income depends on surf tourism, with informal workers like guides and photographers especially vulnerable to weather disruptions.
- Save the Waves aims to include a dedicated ecosystem restoration component in future iterations, potentially funding mangrove and watershed recovery to buffer storm impacts and protect surf quality.
Why it matters: The program directly links climate resilience funding to measurable environmental thresholds, offering rapid financial relief to hundreds of tourism-dependent workers after storms. With 70% of local incomes tied to surfing, the insurance could stabilize a fragile economy while incentivizing long-term coastal restoration—making it a model for other surf-dependent regions facing increasing climate volatility.
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