Oriente Salvaje, a surf destination on El Salvador's eastern coast, has launched the world's first parametric insurance policy for surf breaks, designed to protect local livelihoods and ecosystems from climate-related disruptions. The pilot project, developed with nonprofit Save the Waves and broker Willis Towers Watson, aims to provide rapid financial support when extreme weather threatens the area's renowned waves.
The policy was inspired by the vulnerability of Oriente Salvaje's surf tourism economy, which relies on pristine breaks like Las Flores and Punta Mango. Intense tropical storms can flood the coastline, disrupt transport, and deter surfers, halting local businesses. 'Surf tourism is the backbone of our local economy,' said Rodrigo Barraza, founder of the Oriente Salvaje tourism association. 'This dependence makes us highly vulnerable to climate disruptions.'
Parametric insurance differs from traditional coverage by triggering payouts automatically when predefined conditions—such as rainfall levels—are met, avoiding lengthy claims assessments. The model has been used for coral reef restoration and is now being tested on surfing for the first time. 'We scoured the world for places easily disrupted by a climate event with a large dependence on the surf economy,' said Nik Strong-Cvetich, CEO of Save the Waves.
Oriente Salvaje was designated a World Surfing Reserve in 2024, recognising the overlap between biodiversity and surf locations. The insurance pilot builds on this conservation work, aiming to safeguard both the environment and the local economy. 'Rainfall appears to represent the most robust and suitable single-trigger option for the region,' noted Juanita Blanco of Willis Towers Watson.
