Global reinsurer, Swiss Re, together with Taiwan Fire & Marine Insurance, has jointly developed the first parametric aquaculture insurance solution in Taiwan.
The parametric insurance will cover grouper onshore fisheries in Ping Tung County in southern Taiwan against extreme rainfall of over 480 mm for two consecutive days.
The innovative insurance solution uses meteorological data to allow faster payout, reducing the time that is needed to settle claims and reducing the ambiguity of quantifying loss incurred for the fish farmers, says Swiss Re in a statement.
“It will protect grouper fish producers from flash flood, which may cause overflowing of onshore fisheries and escape of the fishes, resulting in a loss of fish stock,” said the statement.
The aquaculture insurance solution will protect 120,000 hectares of grouper fish ponds that produce 25 million kg of groupers annually, making the fisheries sector in Taiwan more resilient.
Grouper is one of the expensive fish breeds in Ping Tung County and a high economic asset in the aquaculture industry in Taiwan.
This is the second insurance solution launched in Taiwan by Swiss Re for the agricultural sector, in response to the Taiwan government's initiative in developing insurance solutions for farmers and fisheries. The first such offering is indemnity insurance for pears, launched in 2015.