Demand for Aquaculture Insurance and Barriers’ Effects Among Fish Farmers in Lagos, Nigeria

Abstract

Boosting aquaculture insurance, as a financial instrument, can assist the sustenance of aquatic food demand in order to cushion fish farmers’ income, and ensure adequate farm property safety in Nigeria. This study examined the barriers affecting aquaculture insurance and its related demand determinants, with empirical evidence drawn from fish farmers in Lagos State. The study employed a survey approach cum multiphase sampling technique. A descriptive statistic and Friedman’s rank test were adopted in the data analysis. This study contributes immensely with the tabular and graphical models that explain the barriers affecting aquaculture insurance and demand determinants for aquaculture insurance in Lagos State, Nigeria. While a major barrier, from the findings, to demand for aquaculture insurance was recorded due to high cost of insurance premium, poor access to the policy, and the likes; low awareness, poor insurance regulation, poor claims settlement and low financial literacy, among fish farmers, were recorded for demand determinants for aquaculture insurance. The study recommended that aquaculture underwriters should enhance and expand their value-chain processes in a bid to bolster fish farmers’ production capacities. However, the government should expand the subsidy net for more fish farmers to have access. With the simplicity of insurance contract design, aquaculture underwriters will gain attraction from farmers, which will, in turn, generate improved premium and their potential profitability.