Insurance mechanisms to mediate economic risks in marine fisheries

Insurance mechanisms to mediate economic risks in marine fisheries. Mumford, J. D., Leach, A. W., Levontin, P., & Kell, L. T. ICES JOURNAL OF MARINE SCIENCE, 66(5):950-959, OXFORD UNIV PRESS, GREAT CLARENDON ST, OXFORD OX2 6DP, ENGLAND, JUN, 2009.
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Uncertainty affects the behaviour of fishers and fisheries regulators in a way that can adversely affect the sustainability of fish stocks, fisheries income, and productivity. In agriculture, there has been a long history of using levy funds and public and private insurance schemes to mediate economic risks to growers resulting from environmental variability and quarantine risks. In the United States, the federal government continues to underwrite funds (collected by contracted private agents) that are used to protect contributors from the effects of extreme weather and pest and disease losses. In Europe, there are examples of industry-based mutual funds to mediate risks from exotic agricultural diseases. In agriculture, insurance mechanisms have been successful in reducing risk-inducing behaviour by contractual compliance to risk-reducing codes of practice. For fisheries, insurance may provide a tool to address some elements of uncertainty in a way that would help both the fishing industry and the regulators achieve objectives of sustainability, income security, and productivity. This paper presents a brief review of insurance in agriculture and capture fisheries and uses a stochastic model to illustrate how insurance funds could protect revenue and encourage increased sustainability of fisheries and improve compliance with and enforcement of fisheries regulation. Although insurance may be a partial solution to unsatisfactory fisheries management and fishing performance, some potential challenges to this novel approach are also discussed.

@article{ ISI:000266350100017,
Author = {Mumford, J. D. and Leach, A. W. and Levontin, P. and Kell, L. T.},
Title = {{Insurance mechanisms to mediate economic risks in marine fisheries}},
Journal = {{ICES JOURNAL OF MARINE SCIENCE}},
Year = {{2009}},
Volume = {{66}},
Number = {{5}},
Pages = {{950-959}},
Month = {{JUN}},
Abstract = {{Uncertainty affects the behaviour of fishers and fisheries regulators in
   a way that can adversely affect the sustainability of fish stocks,
   fisheries income, and productivity. In agriculture, there has been a
   long history of using levy funds and public and private insurance
   schemes to mediate economic risks to growers resulting from
   environmental variability and quarantine risks. In the United States,
   the federal government continues to underwrite funds (collected by
   contracted private agents) that are used to protect contributors from
   the effects of extreme weather and pest and disease losses. In Europe,
   there are examples of industry-based mutual funds to mediate risks from
   exotic agricultural diseases. In agriculture, insurance mechanisms have
   been successful in reducing risk-inducing behaviour by contractual
   compliance to risk-reducing codes of practice. For fisheries, insurance
   may provide a tool to address some elements of uncertainty in a way that
   would help both the fishing industry and the regulators achieve
   objectives of sustainability, income security, and productivity. This
   paper presents a brief review of insurance in agriculture and capture
   fisheries and uses a stochastic model to illustrate how insurance funds
   could protect revenue and encourage increased sustainability of
   fisheries and improve compliance with and enforcement of fisheries
   regulation. Although insurance may be a partial solution to
   unsatisfactory fisheries management and fishing performance, some
   potential challenges to this novel approach are also discussed.}},
Publisher = {{OXFORD UNIV PRESS}},
Address = {{GREAT CLARENDON ST, OXFORD OX2 6DP, ENGLAND}},
Type = {{Article}},
Language = {{English}},
Affiliation = {{Mumford, JD (Reprint Author), Univ London Imperial Coll Sci Technol \& Med, Ctr Environm Policy, Silwood Pk,Buckhurst Rd, Ascot SL5 7PY, Berks, England.
   Mumford, J. D.; Leach, A. W.; Levontin, P., Univ London Imperial Coll Sci Technol \& Med, Ctr Environm Policy, Ascot SL5 7PY, Berks, England.
   Kell, L. T., Ctr Environm Fisheries \& Aquaculture Sci Cefas, Lowestoft NR33 OHT, Suffolk, England.}},
DOI = {{10.1093/icesjms/fsp100}},
ISSN = {{1054-3139}},
Keywords = {{capture fishery; feedback dynamics; fisher behaviour; harvest;
   indemnity; insurance; price; regulation; revenue; risk; sustainability;
   uncertainty}},
Research-Areas = {{Fisheries; Marine \& Freshwater Biology; Oceanography}},
Web-of-Science-Categories  = {{Fisheries; Marine \& Freshwater Biology; Oceanography}},
Author-Email = {{j.mumford@imperial.ac.uk}},
Funding-Acknowledgement = {{Commission of the European Communities}},
Funding-Text = {{This study has been carried out with financial support from the
   Commission of the European Communities, specific RTD programme
   ``Specific Support to Policies{''}, SSP-2005-022589 ``Precautionary
   RiskMethodology in Fisheries{''}. It does not necessarily reflect its
   views and in no way anticipates the Commission's future policy in this
   area.}},
Number-of-Cited-References = {{16}},
Times-Cited = {{12}},
Usage-Count-Last-180-days = {{0}},
Usage-Count-Since-2013 = {{13}},
Journal-ISO = {{ICES J. Mar. Sci.}},
Doc-Delivery-Number = {{449SK}},
Unique-ID = {{ISI:000266350100017}},
OA = {{No}},
DA = {{2017-08-17}},
}

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