Japanese fishery insurance payouts in fiscal year 2020 have increased by 60 percent from the previous record high in FY 2019, due to poor fishing for saury and a series of typhoons, according to a Nippon Keizai Shimbun report.
In light of last year’s revised Fisheries Act, which introduced the total allowable catch (TAC) system, the national fund for payments is likely to run out by the end of the year. The "Reserve Plus” insurance for fishermen operates like crop insurance for farmers: If the TAC limit is reached and fishermen have to release fish or halt their season early to avoid exceeding a limit through bycatch, they can be compensated by the insurance system.
The idea is to maintain the income of fishermen who cooperate in resource management. However, such payouts along with an unexpectedly large number of disasters affecting fisheries, will put a strain on the funds of the system.
Japan’s fishery insurance scheme has many levels. According to a 2008 presentation on the system, at the lowest level, there are Fishery Mutual Insurance Associations (FMIA) established by Fisheries Cooperative Associations in each prefecture. In the second layer, to distribute risk, the National Federation of Fishery Mutual Insurance Associations (FMIAs, called “Gyosairen” in Japanese) re-insure the policies of the FMIAs. In the final layer, the government reinsures cases recognized as difficult for Gyosairen to cover.
In cases of large and unexpected disasters, like red tides, the Agriculture, Forestry and Fisheries Credit Foundation provides funds with low interest to such organizations.
Fish farmers were recently compensated for fish mortality related to Typhoon Haishen, called Typhoon Number 10 in Japan.
Photo courtesy of Dane Gillett/Shutterstock
