Ecological Ensurance

Ecological Ensurance, by BASIN, ensures that the RealValue of Natural Capital is protected and stewarded in perpetuity.

Insurance v. Ensurance

Unlike traditional insurance, which is retroactive, Ensurance is proactive, focusing on the protection ecosystems from day one while providing a definitive path to permanent protection along with restoration and stewardship funding. Ensurance Policies and Certificates of Ensurance are issued for specific Ecological Polygons (EPs) as part of the BASIN Protocol.

How it Works

Utilizing the RealValue of Natural Capital framework for specific ecological polygons (properties), Ecological Ensurance 1) properly values the stocks and flows of natural capital, 2) triangulates the relational value of the underlying real asset and natural capital value, and 3) outputs a range of financially viable options that ensure the immediate and permanent protection and regeneration of the EP.

Key components of Ecological Ensurance

Ensurance

Ensures that ecosystems and the benefits they provide, including biodiversity, will permanently be protected and stewarded.

Ensurance Policy

The Policy is the specifications of the Ensurance coverage, cost, and length.

Ensurance Slip

Slips are the precursor to policies with each slip containing all the preliminary data needed for a EP to be considered for a formal policy.

Ensurance Premium

The premium is the annual cost of the Ensurance Policy. The premium is calculated based off of the relationship between the annual RealValue, capital providers (Ensurers), and the underlying real asset cost/value. This relationship calculates cost options to put the ecosystem in permanent trust either today, 2030, 2040, or 2050. Alternatively, Ensurance Premiums can be calculated for any custom # of years including a minimum premium amount which is the lowest cost but only protects the ecosystem year by year, not permanently.

The term "premium" has its origins in the Latin word "praemium," which means "reward" or "prize." While premium has different meanings today, the historical definition is highly applicable to Ensurance: premiums were seen as payments for securing a service or benefit, often with a positive connotation of receiving something valuable in return. What greater value is there than regenerative wealth?

Certificates of Ensurance

Certificates Ensurance have a dual purpose as 1) the individual units of the RealValue of Natural Capital specific to the EP and 2) 1:1 common interests in the overall BASIN Protocol. Certificates are issued for each EP based on the Ensurance rate calculations. Notably, the difference between the RealValue and the highest viable Ensurance Premium is put on Nature’s Balance Sheet and distributed to Nature itself via the BASIN Protocol. In other words, only the absolute minimum number of certificates required to make the ensurance effective are available for purchase, the rest remain in the Protocol.

Ensurance Underwriter

The underwriter is responsible for evaluating and deciding the risk of ensuring ecological polygons, determining policy terms, setting premium prices, working with Ensurers, Ensurance Agents and the Ensured.

Ensurer

aka Ensurance carrier, the Ensurer issues the Ensurance policy, bearing the risk in exchange for Ensurance premiums paid by the Policyholder and/or the Ensured. Ensurer’s are BASIN Members that are either market rate investors, philanthropic funders, or blended finance vehicles that fund the real asset cost upfront and during the policy period.

Ensurance Policyholder

This is the primary or majority holder of the ensurance policy and is often times the payor of the premium. Importantly, only the Policyholder gets the official claim on the ecological indicator data from the ensured polygon.

Ensured

Unique to Ensurance, the Ensured is nature itself, which by definition includes humans and our constructs of society and economy. The Ensured is the ecology of place: the ecosystem and species themselves, the land owner, neighbors, the region, and the direct, indirect, and cumulative beneficiaries of ecosystem system services. The BASIN Protocol is the payment mechanism by and for the Ensured.

Ensurance Agents

Agents are members of the BASIN Protocol who are seeking to fund their own nature and climate projects or help others fund their projects. Ensurance Agents help source and underwrite Ensurance polices and sell Certificates of Ensurance.

Entrust

Once the the Ensurance Premium has been paid in full and the Ensurance Policy has ended, the EP (land/ecosystem) goes into permanent trust. The trust structure is outlined in the BASIN Protocol.