Development and Risk Characteristics of Aquaculture Insurance

Industry Observations on Aquaculture Insurance

As aquaculture scales up, fishery insurance plays a key role in mitigating production risks. The industry is shifting from cost-based coverage to price- and income-based models to address the combined challenges of market volatility and natural disasters.

• Concentrated natural disaster risks, such as typhoons and heavy rains causing facility damage or sudden changes in water conditions.
• The unique characteristics of biological assets make inspection and loss assessment difficult, as diseases often occur with concealment and suddenness.
• Significant market price volatility affects farmers' final returns and increases underwriting uncertainty.

Current product innovation focuses on index insurance and weather data applications to improve claims efficiency. However, insufficient foundational data remains a key constraint for accurate pricing. Specific coverage scope and payout standards are subject to the terms of the insurance contract.