Document Type : Promotional-Science Article

Authors

• Fatemeh Azadbakht ¹
• Sara Ahadi Kalayeh ²

¹ Islamic Studies Research Group, Insurance Research Center, Tehran, Iran.

² Master’s Student, Department of Fiqh and Fundamentals of Islamic Law, Faculty of Theology and Islamic Studies, University of Tehran, Tehran, Iran.

Abstract

Background and Objectives:
The aquaculture industry, particularly fish farming, plays a significant role in supplying protein for the world’s growing population and constitutes a key component of the global food economy by contributing to food security and employment. Nevertheless, this sector remains highly vulnerable to climatic fluctuations, viral and parasitic disease outbreaks, environmental pollution, and market volatility. Managing these risks requires effective financial instruments, among which insurance serves as a crucial mechanism. In Iran, the existing fish farming insurance structure does not fully meet the needs of the sector. Owing to its dependence on subsidized government resources and centralized administration, it lacks financial dynamism and sustainability. The objective of this study is to propose a reform-oriented model for improving the fish farming insurance framework in Iran, drawing on the experience of three leading countries in this domain, so as to strengthen the economic stability of farms and reduce vulnerability to inherent risks.
Methodology:
This research employs a descriptive–analytical and comparative approach. Data were collected through documentary review, including the examination of laws, guidelines, insurance regulations, and official reports from selected countries. The study population comprises the insurance and regulatory frameworks of Iran, China, India, and Japan
.Findings:
Comparative results indicate that in state centered models (such as Iran and China), loss coverage relies primarily on public funds and subsidies, and risk assessment tends to be administrative rather than competitive. In contrast, in market oriented models (such as India and Japan), the government mainly acts as a facilitator and regulator, while private insurers and specialized cooperatives serve as the principal implementers of insurance activities. Differences in supervisory and premium rating frameworks have led market driven systems to achieve greater financial stability and faster, more transparent compensation processes.
Conclusion:
Based on the findings, it is recommended that Iran transform its fish farming insurance system toward a hybrid, data driven model in which the Agricultural Insurance Fund acts as a reinsurer and technical regulator, while commercial insurance companies or takaful (mutual) funds operate as direct insurers. Establishing a dedicated takaful fund for edible fish insurance, together with reforming the subsidy mechanism and developing risk based regulatory oversight, can provide an indigenous and sustainable framework for managing climatic, biological, and economic risks in the aquaculture sector. Implementing this model would reduce the financial risk of insurers, enhance producers’ confidence, and promote long term economic stability in Iran’s aquaculture industry.
Background and Objectives:
The aquaculture industry, particularly fish farming, plays a significant role in supplying protein for the world’s growing population and constitutes a key component of the global food economy by contributing to food security and employment. Nevertheless, this sector remains highly vulnerable to climatic fluctuations, viral and parasitic disease outbreaks, environmental pollution, and market volatility. Managing these risks requires effective financial instruments, among which insurance serves as a crucial mechanism. In Iran, the existing fish farming insurance structure does not fully meet the needs of the sector. Owing to its dependence on subsidized government resources and centralized administration, it lacks financial dynamism and sustainability. The objective of this study is to propose a reform-oriented model for improving the fish farming insurance framework in Iran, drawing on the experience of three leading countries in this domain, so as to strengthen the economic stability of farms and reduce vulnerability to inherent risks.
Methodology:
This research employs a descriptive–analytical and comparative approach. Data were collected through documentary review, including the examination of laws, guidelines, insurance regulations, and official reports from selected countries. The study population comprises the insurance and regulatory frameworks of Iran, China, India, and Japan
.Findings:
Comparative results indicate that in state centered models (such as Iran and China), loss coverage relies primarily on public funds and subsidies, and risk assessment tends to be administrative rather than competitive. In contrast, in market oriented models (such as India and Japan), the government mainly acts as a facilitator and regulator, while private insurers and specialized cooperatives serve as the principal implementers of insurance activities. Differences in supervisory and premium rating frameworks have led market driven systems to achieve greater financial stability and faster, more transparent compensation processes.
Conclusion:
Based on the findings, it is recommended that Iran transform its fish farming insurance system toward a hybrid, data driven model in which the Agricultural Insurance Fund acts as a reinsurer and technical regulator, while commercial insurance companies or takaful (mutual) funds operate as direct insurers. Establishing a dedicated takaful fund for edible fish insurance, together with reforming the subsidy mechanism and developing risk based regulatory oversight, can provide an indigenous and sustainable framework for managing climatic, biological, and economic risks in the aquaculture sector. Implementing this model would reduce the financial risk of insurers, enhance producers’ confidence, and promote long term economic stability in Iran’s aquaculture industry.

Keywords

• "Aquaculture Risks"
• "Fish Farming Insurance"
• "Regulatory Framework"

Main Subjects

• Comparative studies in the field of insurance