With many ecosystems rapidly declining and even at risk of collapse, there is now a greater understanding that healthy ecosystems are crucial, and a greater awareness that ecological restoration requires major financing — ensuring ecosystem integrity and resilience has become an international priority.

However, factors like the inherent unpredictability of ecosystems mean that there can be some reluctance in this regard, SCOR said in its press release announcing the launch of the second Ecological Restoration Insurance Solution Product: “Manage”.

To address the issue, SCOR developed the unique, scalable and impact assessment-based Ecological Restoration Insurance Solution as part of its NatReCo Initiative, which offers pro-active, innovative (re)insurance solutions to support nature-resilient projects that address societal challenges.

The Ecological Restoration Insurance Solution aims to support ecological restoration projects whose planned recovery trajectories have been adversely impacted by pre-defined perils, giving them a greater prospect of completion. By de-risking financing opportunities, this Solution bridges the “gap” between the need and the desire to finance ecological restoration projects.

The “Manage” product marks the next evolution of the Ecological Restoration Insurance Solution. It covers the ongoing management phase of a project, which focuses on maintaining and improving the conditions for recovery that have been implemented. This allows the ecosystem integrity level to continue to increase, which in turn lowers the vulnerability level. While they naturally complement one another, both Restore and Manage are also standalone products, depending on where a stakeholder is in the project timeline.

“At SCOR, we understand that an ecological restoration project can take years to complete, and that the level of risk changes throughout the project. That is why we have developed, and will continue to develop, products which we believe will appropriately support stakeholders on their project journey and which reflect the risks their project is facing”, commented Jean-Paul Conoscente, CEO of SCOR P&C.