Solution Use high-resolution flood and loss models with detailed property exposure data to quantify how coastal wetlands reduce storm-surge flood damages and annual flood losses, enabling these risk-reduction benefits to be reflected in insurance-standard risk modelling. Key challenge Wetlands’ risk-reduction benefits are often not measured in ways that meet insurance-sector modelling standards, making it harder to align conservation with risk reduction and insurability goals. Context With increasing exposure to coastal hazards in the northeastern USA, interest is growing in nature-based solutions for risk reduction. Hurricane Sandy (2012) caused devastating storm-surge flooding and was the second costliest hurricane in US history; damages in the northern Atlantic are largely driven by storm surge and are aggravated by population growth, urban development, and sea-level rise. In New Jersey’s Barnegat Bay, more than 25% of salt marshes have been lost over the past century due to infilling and development, though losses have been limited since the 1970s by the New Jersey Coastal Wetlands law, and structural defenses like shoreline armoring can be costly and harm ecosystems. Solution in practice The study applies high-resolution flood and loss models and an extensive property exposure database (tools widely used by the insurance sector) to estimate the protective value of temperate coastal wetlands. Regionally, it finds wetlands avoided about $625 million in direct flood damages during Hurricane Sandy. Locally in Barnegat Bay (Ocean County, NJ), it pairs the modelling with a database of synthetic storms to estimate an average 16% reduction in annual flood losses from salt marshes, with higher reductions at lower elevations, thereby quantifying wetlands’ ecosystem service as measurable flood-risk reduction. Impact / outcome Wetlands avoided about USD 625m in flood damage during Hurricane Sandy; salt marshes cut annual flood losses by 16% on average in Barnegat Bay. Next steps Advance collaboration between ecological modelling and the risk modelling industry so wetland risk-reduction benefits are consistently modelled to industry standards, improving the accuracy of risk assessment and supporting decisions that align conservation with flood-risk reduction where appropriate. Organizations involved Authoring: Scientific Reports (Nature Portfolio) - peer-reviewed study Implementation partners Data Providers; Regulators & Policymakers; Civil Society Organizations