Study On Mariculture Insurance In China

According to The State of World Fisheries and Aquaculture released by Food and Agriculture Organization of the United Nations in 2014, the aquaculture industry provided nearly half of the fishery output for human consumption, and the proportion is expected to reach 62% by 2030. As one of the largest aquaculture nations in the world, China has been in the first place for years in terms of the total output of aquaculture. Nevertheless, China’s marine aquaculture highly depends on its natural environment, climate and weather. It is characterized by simplification and extensification, low level of industrialization and intensification and small scale, and high susceptibility to natural disasters. Therefore, it is a weak industry with high risk.Given the fact that China’s marine aquaculture is under rapid development and suffers high risk, there is a tremendous market demand for marine aquaculture insurance. Despite the above fact, how to develop this kind of insurance has always been an unsolved challenge because the factors that influence this insurance, including high risk, catastrophe risk, information asymmetry, moral hazard and adverse selection, significantly restrict its growth. As a result, China’s marine aquaculture insurance is still in its starting and explorative stage. With small gross premium and narrow coverage, it is a far cry from meeting the demand of China’s marine aquaculture development.This thesis, based on a large amount of detailed data, sets forth the development of China’s aquaculture industry and its loss suffered from fisheries disaster. On top of that, in line with the strategies and guidelines put forth by the governments of all levels for the development of marine fisheries and aquaculture, it elaborates the necessity and significance of this study. Above all, the thesis, using qualitative and quantitative approaches, focuses on a comprehensive and detailed expounding on how to identify, analyze and assess the risk of marine aquaculture.Furthermore, this thesis, considering the features and risks of marine aquaculture development in Shandong Province, and through analysis of the field survey and research of marine aquaculture insurance in some provinces, makes an in-depth elaboration on the factors that restrict the marine aquaculture insurance in China and the currently existing contradictions and problems.In order to address the aforesaid issues, this thesis, making a reference to the development patterns and successful experience of fisheries and aquaculture insurance in Japan and Korea, proposes a institutional design for China’s marine aquaculture insurance and explores the breakthroughs in ideas and patterns concerning its development. It is suggested in the thesis that government play a dominant role in nurturing marine aquaculture insurance by making a good top-level policy design. Government also should provide more policy support and financial subsidies for marine aquaculture insurance so as to motivate various insurance undertakers to take an active part in innovation and pilot projects. Moreover, a multi-level guarantee mechanism for coping with catastrophe risk should be established to improve the reinsurance system for the policy-guided fisheries insurance. Meanwhile, a guarantee system for preventing and mitigating marine disasters should be set up for the whole society at large.