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Livestock and Aquaculture Insurance in Developing Countries

Topic :

The publication is a brief introduction to the role of insurance as a risk management mechanism in livestock and aquaculture enterprises. As such, it also intends to contribute to redressing the current imbalance in development efforts between crop insurance and livestock/aquaculture insurance. With the focus of the book being on enterprises in developing countries, most attention is given to livestock kept for food and/or fibre, and transport/motive power. It does not purport to be a guide on to how to design an insurance product for these types of farming. Rather it aims at setting the scene, and exploring with the reader some of the complexities involved in this financial mechanism for risk sharing.

It starts by stressing the importance of risk management practices other than insurance, including policy issues e.g. site licensing, regulations relating to such matters as quarantine and compulsory veterinary procedures as well as on-farm physical measures such as attention to structural maintenance of fences, cages, racks and housing, daily monitoring for disease conditions, and both preventive and curative veterinary procedures.

In order to further identify the potential role for insurance, the publication briefly describes financially-based mechanisms such as share-farming, farming partnerships and Islamic-type borrowing where the lender shares the potential profit and the potential loss as well as the forward sale of output and other types of contractual farming arrangements.

It then covers the more usual areas of insurance, such as: the roles of public and private sectors; the overall design of policies, including the basis for valuation; marketing policies; methods of collecting premiums and paying indemnities; loss adjustment; insurance product monitoring and modification.

While some of the example material is taken from developed country livestock and aquaculture experience, the basic target group of readers is expected to be those concerned with these enterprises in developing parts of the world.

  • Resource type
  • Author Roberts, R.A.J.
  • Organisation
  • Year of Publication2005
  • Region
  • LanguageEnglish
  • Number of pages81 pp.

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