This compendium, produced as part of the EU-funded NATURANCE project, brings together guidance and real-world examples to explore the intersection of nature and insurance. It serves as a reference point for insurers, policymakers, and investors seeking to implement nature-related insurance products. The report focuses on the role of insurers as risk carriers and highlights how insurance can evolve from traditional compensation to supporting nature-based solutions (NbS) for climate adaptation.

Introduction

The NATURANCE project examines how the insurance sector supports the uptake of NbS through underwriting and investment. It utilised nine Innovation Labs across Europe to co-design solutions for hazards like flood resilience in the Netherlands, wildfire risk in the Mediterranean, and urban heat in London. These labs fostered stakeholder collaboration to address challenges such as equitable business models, policy reforms, and quantifying the performance of nature-based solutions. The compendium aims to lower barriers to entry for practitioners moving from awareness to implementation.

Compendium of guidance on nature and insurance

This section synthesises NATURANCE deliverables alongside external publications from organisations such as UNEP FI, UNDP, WWF, and The Geneva Association. Observations indicate that nature-related risks are frequently subject to modelling gaps, as catastrophe models often exclude natural assets as parameters. This limitation hinders the estimation of risk-reduction benefits provided by nature. Additionally, NbS projects often lack reliable revenue streams, making premium payments difficult for nature-related insurance products. External guidance frames insurance as an enabler of private nature finance and a manager of emerging risks from nature loss.

Compendium of nature-related insurance products

The report provides an evidence base of 21 nature-related products drawn from a broader digital library of 47 case studies. These are categorised into three groups: insurance for nature-positive, resilience insurance, and transition insurance. Products range from parametric coral reef insurance in Hawaii to jaguar protection insurance in Argentina. Most identified products (74%) are designed to address risks to nature, such as ecosystem degradation. Only 6% address transition risks, such as liability insurance for integrating nature into risk management plans, representing a significant opportunity for future development.

Analysis of nature-related insurance products identified in compendium

Analysis of the 47 digital library entries shows that nature-related insurance launches have accelerated since 2019. Approximately 81% of these products are active, suggesting they have moved beyond experimental phases to achieve commercial or institutional viability. Emerging markets are well represented, with the Asia-Pacific and Latin America and Caribbean regions accounting for 46% of total case studies. In contrast, Sub-Saharan Africa accounts for only 6% of cases.

Indemnity-based triggers remain the most common, used in 60% of cases, while parametric triggers account for 34%. Parametric schemes are notably newer, with 75% established in the last three years, primarily in the Global South. The analysis found that 62% of projects are led by the private sector, with public-private partnerships making up 34%. Fully public models are rare, representing only 4% of the library. Mapping against policy goals reveals that 81% of products align with SDG 13 (Climate Action), while 64% align with Global Biodiversity Framework Target 8, which addresses minimising climate impacts on biodiversity.

A key observation is that explicit risk reduction elements feature in less than a third of products. The report suggests that greater integration of risk reduction with risk transfer represents a critical opportunity to strengthen the effectiveness and viability of these insurance solutions. Impact underwriting, where premium discounts are offered for verified nature-based risk reduction, is highlighted as an emerging practice.

Conclusion

The report concludes that insurance can play an expansive role in climate adaptation and nature protection. Realising this potential requires cross-sector collaboration, improved methods for quantifying nature-related risks, and attention to the equitable distribution of costs and benefits. While meaningful innovation is underway, particularly with parametric covers, persistent challenges remain in data availability and the alignment of insurance contract cycles with long-term ecosystem recovery timescales.