The Food and Agriculture Organization (FAO) has released the ‘World Review of Capture Fisheries and Aquaculture Insurance 2022’ which presents the findings of five regional (Asia, Africa, Europe, Latin America, and Oceania); and four national reports of viz. China, India, Russia, and the United States (US) conducted in 2020.
- This review is an update of previous FAO publications on the state of world aquaculture insurance (2006) and the state of world capture fisheries insurance (2009) analyzing developments in the insurance industry over the past decade.
There is low penetration of insurance products in the Indian fisheries and aquaculture sector. Therefore, it recommended a collaboration of public and private insurance services to recover this sector.
- The National report of India was authored by Shinoj Parappurathu, Senior scientist at Indian Council of Agricultural Research-Central Marine Fisheries Research Institute (ICAR-CMFRI) Kochi, Kerala.
- Fishing vessels, coastal immovable property, and aquaculture units have abysmal insurance coverage.
Reasons behind low Insurance Penetration:
i.One of the reasons for the low adoption of the fishing vessels and asset insurance in the coastal region is the high cost of the policies currently available.
ii.There are no options for paying premiums in installments.
iii.Fishermen and aquaculture farmers are generally unaware of insurance options.
Factor that arise need of Insurance in the Fisheries Industry:
It is climate change-induced extreme weather which results in rise in occupational hazards to fishers’ and fish farmers’ lives and property.
- Therefore the participation of insurance service providers is required to improve the sector’s overall competitiveness and efficiency of service delivery, and to develop strategies and options for protecting small-scale fishermen from occupational hazards.
- Also, Innovative solutions that link premium payments can encourage fishermen to take up insurance packages.
i.In 2020, the number of aquaculture insurance policies in force was estimated at over 40,000 worldwide with China and Indonesia the largest markets for this type of insurance. .
ii.Some 61% of the insured fishing vessels are found in Asia, followed by the Americas (18%), Europe (14%) and Africa (6%).
iii.Nearly all of the estimated 67, 800 large-scale industrial fishing vessels are covered by marine hull insurance, as well as 50–60% of the estimated 430 000 semi-industrial fishing vessels.
- Over 95% of the 2.3 million motorized small-scale fishing vessels operate uninsured.
Point to be noted:
It should be noted that the United Nations General Assembly (UNGA) has declared 2022 the International Year of Artisanal Fisheries and Aquaculture (IYAFA 2022).
Mariculture, the future source of marine fish, also requires insurance coverage and to be viable in the long run. New insurance packages covering marine and inland cages, sea farming, brood bank/hatchery units and seaweed farming units should be introduced on a priority basis
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About Food and Agriculture Organization (FAO):
Director-General– Qu Dongyu
Headquarters– Rome, Italy