Analyzing the shrimp insurance market in Indonesian aquaculture industry:
Introduction: This project was designated to study the feasibility of introducing insurance contracts on shrimp losses in Indonesia. Led by Longline Environment, a specialist consultancy company in aquaculture, the project is in collaboration with the Walton Foundation (owners of Walmart and ASDA) as the main funder, the Indonesian insurance association and the Indonesian private insurance industry, as beneficiaries, Global Aquaculture Insurance Consortium (GAIC), specialized underwriting group in aquaculture, and the University of Liverpool. Dr. Assa is leading the part led by the University on loss risk analysis and insurance design.
Impact: The project is the first of its kind in the world, to use actuarial techniques to provide educational knowledge on the Shrimp insurances, which is now mainly based on heuristic approaches. The project can potentially enhance a $1.5 billion industry to a $10 billion industry, by facilitating finances and investment to expand the business. The worldwide impact is at least multiplied by a factor of ten, which can include countries like China, Vietnam, Mexico, Taiwan, and many others. This not only can significantly improve the shrimp farmers' livelihood all around the world, but also has a direct impact on Shrimp production in terms of quantity and quality.
The project was for 13 months, Aug 2019, to Sep 2020.
The above picture is the general meeting held by the Indonesian insurance association on shrimp insurances. From left: Rui Gomes Ferreira (CEO of Longline Environment), two members of the Indonesian insurance association, Neil Hopkins (Underwriter, Global Aquaculture Insurance Consortium), and Dr. Hirbod Assa (University of Liverpool).