When storms generate strong winds, extreme currents, and increase wave heights, or excess rainfall decreases water salinity, the impacts for aquaculture producers can range from property damage, to lower production levels, fish escape, and others.
An aquaculture producer’s exposure to different climate risks is likely dependent on whether their operations are in the open-sea or located on-shore.
For example, open-sea operations may be more concerned with cyclone, typhoon, wave height, or toxic algae risks, whereas on-shore operations such as shrimp parks may be more sensitive to heat waves or water salinity volatility due to abnormal precipitation patterns.
Traditional insurance products for aquaculture rely on the expertise of highly qualified surveyors and their understanding of how natural events have historically impacted producers. Building from this expertise, Descartes integrates new data and analytic techniques to precisely evaluate the exposure of each aquaculture farm, designing a customized policy for the right perils and right risk period for each client.