Case study

San Crisanto Mangrove Forest Resilience insurance

NATURANCE Compendium

Area characterisation:

Marine

Objective:

Fund mangrove recovery after hurricanes

Start/end date:

Financing:

Private

Potential impacts/benefits:

  • Up to $100,000 post-hurricane payout to community
  • Self-sustaining model via carbon credit premium payments
  • 47,908t CO₂ sequestered across four reporting periods
  • Coastal flood and erosion protection for Mayan communities

Actions:

First parametric insurance for mangrove protection in Mexico, triggering up to US$100,000 after a hurricane; premiums are funded by community carbon-credit sales, with payouts financing mangrove regeneration and infrastructure repair.

Organisations:

AXA Climate, Seguros Mexico, ClimateSeed

Contacts:

Case study referred by AXA Climate, UNEP FI. For more information, please contact: info@naturance.eu.

AXA Climate, AXA Seguros Mexico, and ClimateSeed developed the first parametric insurance policy for the protection of mangrove forests in Mexico, covering the San Crisanto mangrove conservation and restoration project in the Yucatán Peninsula. San Crisanto is a community of approximately 150 Mayan families whose economic activity is structured around 800 hectares of mangrove forest through restoration, conservation, carbon credit sales, and ecotourism. The community is highly vulnerable to hurricanes: in 2002, Hurricane Isidore destroyed 99% of the area's mangroves. The parametric product triggers a payout of up to $100,000 when a hurricane passes through the insured area, with the amount varying by wind strength and proximity to the core protected area. Compensation is paid directly to the policyholder, the Ejido San Crisanto community, to support mangrove regeneration, debris cleanup, and repair of fishing and ecotourism infrastructure. The insurance premium is paid by the community through funds received from annual carbon credit sales under the Voluntary Carbon Market, creating a self-sustaining financial model. The policy has been renewed three times since its launch in 2023. The project has captured approximately 47,908 tonnes of CO₂ across four reporting periods. Mangroves also reduce the impact of coastal flooding and support biodiversity-rich ecosystems, protecting and providing for local communities.

Sustainable Development Goals:

  • 13. Climate action

  • 14. Life below water

  • 1. No poverty

  • 11. Sustainable cities and communities

Publications and reports: