Restoration Insurance Service Company (RISCO)

The Restoration Insurance Service Company (RISCO) is a social enterprise designed to fund mangrove conservation and restoration by monetizing the adaptation and mitigation values of these ecosystems. It generates revenue through annual fees from insurance companies for flood reduction benefits and the sale of blue carbon credits.

• RISCO operates as a social enterprise that connects the adaptation and mitigation values of mangroves to beneficiaries, such as insurance companies, who typically lack the resources or knowledge for protection. The business model involves selecting sites with high flood reduction benefits, modeling that value to charge insurance companies annual fees, and selling blue carbon credits to organizations.
• The initiative is currently in a pilot phase in Vietnam and the Philippines, where it is selecting 2-3 pilot sites. The project faces three primary barriers: identifying sites with enough mangrove cover to justify development, finding regions with adequate insurance penetration, and navigating legal challenges regarding blue carbon credit rights.
• The model provides diverse benefits to various stakeholders: coastal communities and women's groups receive conservation payments, revenue from carbon credits, and livelihood income; asset owners gain erosion and flood control; and insurance companies benefit from lower risk exposure and payouts during storms, typhoons, and cyclones. Due to its growing non-life insurance market and mangrove cover, Kenya is identified as a suitable location for replicating the RISCO model in Africa.

APA

Climate Policy Initiative (2021). Restoration Insurance Service Company (RISCO). https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/restoration-insurance-service-company-risco-2/

Chicago

Climate Policy Initiative. Restoration Insurance Service Company (RISCO). 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/restoration-insurance-service-company-risco-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Restoration Insurance Service Company (RISCO) |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/restoration-insurance-service-company-risco-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021restoration, author = {{Climate Policy Initiative}}, title = {{Restoration Insurance Service Company (RISCO)}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/restoration-insurance-service-company-risco-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }