A brief introduction to the role of insurance as a risk management mechanism in livestock and aquaculture enterprises, exploring some of the complexities involved in the financial mechanism for risk sharing.

Governments in developing countries have been increasingly involved in the support of agricultural (crop and livestock) insurance programs in recent years. In their attempts to design and implement agricultural insurance, they have sought technical and financial assistance from the international community and particularly from the World Bank. One of the recurrent requests from governments regards international experience with agricultural insurance, not only in developed countries, where in some cases agricultural insurance has been offered for more than a century, but also in middleand low-income countries. Governments are particularly interested in the technical, operational, financial, and institutional aspects of public support to agricultural insurance. 'Government Support to Agricultural Insurance' informs public and private decision makers involved in agricultural insurance about recent developments, with a particular focus on middle- and low-income countries. It presents an updated picture of the spectrum of institutional frameworks and experiences with agricultural insurance, ranging from countries in which the public sector provides no support to those in which governments heavily subsidize agricultural insurance. This analysis is based on a survey conducted by the World Bank s agricultural insurance team in 2008 in 65 developed and developing countries. Drawing on the survey results, the book identifies some key roles governments can play to support the development of sustainable, affordable, and cost-effective agricultural insurance programs.

Gain a holistic view of agricultural (re)insurance and capital market risk transfer Increasing agricultural production and food security remain key challenges for mankind. In order to meet global food demand, the Food and Agriculture Organisation estimates that production has to increase by 50% by 2050 and requires large investments. Agricultural insurance and financial instruments have been an integral part to advancing productivity and are becoming more important in increasingly globalized and specialized agricultural supply chains in the wake of potentially more frequent and severe natural disasters in today’s key producing markets. Underwriting, pricing and transferring agricultural risks is complex and requires a solid understanding of the production system, exposure, perils and the most suitable products, which vastly differ among developed and developing markets. In the last decade, new insurance schemes in emerging agricultural markets have greatly contributed to the large growth of the industry from a premium volume of US$10.1 billion (2006) to US$30.7 billion (2017). This growth is bound to continue as insurance penetration and exposure increase and new schemes are being developed. Agricultural (re)insurance has become a cornerstone of sovereign disaster risk financing frameworks. Agricultural Risk Transfer introduces the main concepts of agricultural (re)insurance and capital market risk transfer that are discussed through industry case studies. It also discusses best industry practices for all main insurance products for crop, livestock, aquaculture and forestry risks including risk assessment, underwriting, pricing, modelling and loss adjustment. Describes agricultural production risks and risk management approaches Covers risk transfer of production and financial risks through insurance and financial instruments Introduces modelling concepts for the main perils and key data sources that support risk transfer through indemnity- and index-based products Describes risk pricing and underwriting approaches for crop, livestock, aquaculture and forestry exposure in developed and developing agricultural systems Become familiar with risk transfer concepts to reinsurance and capital markets Get to know the current market landscape and main risk transfer products for individual producers, agribusinesses and governments through theory and comprehensive industry case studies Through Agricultural Risk Transfer, you’ll gain a holistic view of agricultural (re)insurance and capital market solutions which will support better underwriting, more structured product development and improved risk transfer.

Risk management is increasingly gaining attention within the aquaculture sector, as reflected in the development and increasing implementation of better management practices, codes of conduct and codes of good practice, standard operational procedures, certification and traceability. Aquaculture insurance is one of the tools used in the management of risks in aquaculture. This publication provides an overview of the current status of aquaculture stock insurance in the world. Seven syntheses covering Asia, China, Europe, North America, Oceania, South America and sub-Saharan Africa show the specificities of the situation with regard to aquaculture stock insurance. The publication also presents a summary of these syntheses, together with conclusions and clear recommendations at various levels to increase the contribution of aquaculture stock insurance to the sustainable management and development of the aquaculture sector.

These Guidelines are an outcome of a joint FAO, Network of Aquaculture Centres in Asia-Pacific (NACA) and Asia-Pacific Rural and Agricultural Credit Association (APRACA) Regional Workshop on the Promotion of Aquaculture Insurance in Asia, held in Bali, Indonesia, from 30 April to 2 May 2007. The workshop was hosted by the Government of Indonesia, Directorate General for Aquaculture, and attended by policy-makers and international experts from the rural finance, insurance and aquaculture sectors from both the region and elsewhere. The document also contains the Report of the Regional Workshop and two background papers produced for the workshop.

FAO Fisheries and Aquaculture Circulars This paper reviews the history and status of fishery and aquaculture insurance in China, covering its organization, implementation mechanisms, policy development, performance evaluation, and innovations. The case studies cover capture fisheries and finfish, crab, shrimp and seaweed farming.

A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.