Surf’s up, risks down: How a bold insurance plan could preserve surfing hotspots amid climate threat

As surfing rides a wave of global popularity, its very foundations are under threat from the escalating impacts of climate change. Rising sea levels, more frequent storm surges, and coastal erosion are jeopardising the intricate ocean floor features and ecosystems.

Partner: ORRAA

Implementers: Save The Waves, local environmental NGOs, community-based organizations, and government agencies (local and national)

Country & Region: El Salvador

SAA System: Coastal and oceans

Beneficiaries/Impact: 1,000 surf ecosystems by 2030

The economic impact of surfing is impressive. From its origin in Polynesia hundreds of years ago, the global surfing market is expected to approach a staggering US$5 billion by 2027. This growth is complemented by a burgeoning surf tourism sector, which is anticipated to expand by 80% by 2032.

Climate change, however, threatens these impressive opportunities, with sea level rise and more extreme weather events, including through storm surge and coastal flooding which is projected to become more frequent in some regions. This in turn has led to the denigration of ocean floor features such as coral reefs and kelp forests, bays and headlands, and watersheds driving sedimentation rates which help create suitable waves for surfing. A sea swell, colliding with a coral reef or sand bank can generate big, barrelling waves good for surfing. This, together with tourism and the communities that rely on it in these coastal areas, embodies the surf ecosystem. If the physical features that create surf waves are damaged or significantly altered by storm surge and other extreme weather events, the whole surf ecosystem is harmed.

In El Salvador, where pristine beaches and perfect waves draw tourists from around the world, the local communities are witnessing this firsthand. As the global climate crisis intensifies, so does the risk to these critical coastal areas, making the preservation of their natural beauty and economic value a pressing challenge.

Recognising this, Save The Waves, an organization deeply committed to safeguarding surf ecosystems, has launched an innovative project that could revolutionise how we think about insurance and environmental protection. By introducing a bespoke parametric insurance model, supported by ORRAA the international multi-stakeholder collaboration through funds from the Government of Canada, it is helping protect these vibrant ecosystems but also ensuring that the local communities of El Salvador have the tools to thrive amid increasing environmental threats.

The goal is to protect 1,000 surf ecosystems by 2030 and help give coastal communities the tools they need to value, protect, and manage their own natural resources. It currently monitors over 5,000 surf spots around the world – 24 per cent of which are in key biodiversity areas.

The parametric insurance model triggers an insurance payout not after, but before disaster strikes – when specific climate conditions are met, e.g. high winds or excessive precipitation. This proactive approach allows communities to secure resources swiftly, minimizing damage and ensuring the continuity of their livelihoods.

This initiative is vital as it introduces a financial safety net that is rare in conventional environmental conservation strategies. By ensuring quick payouts through parametric insurance, Save The Waves helps sustain not only the natural surf ecosystems but also the social and economic structures that depend on them. The insurance model has the potential to be replicated in other key surfing regions through Save The Waves’ existing and growing World Surfing Reserves network. The recently announced World Surfing Reserve in Oriente Salvaje, El Salvador will serve as a case study to scale this approach, an effort that is being led in coalition with local partners ADETCO, Paso Pacifico, and Sociedad Salvaje Salvadoreña.

Elsewhere, Save The Waves is committed to creating additional surf reserves and supporting ecosystem restoration projects that enhance coastal resilience. These efforts are complemented by educational programs aimed at increasing local awareness about the importance of maintaining and protecting natural resources. The community workshops also teach locals how to leverage these natural assets economically through sustainable tourism, thus creating a cyclical benefit that reinforces the importance of conservation.

With the support of international partners and continued financial support, the project not only aims to protect coastal areas but also to enhance them, ensuring they remain vibrant and viable for future generations.