Marine insurance has long safeguarded the world’s cargoes, hulls, and ports—but one of the largest ocean-dependent sectors remains underinsured: small-scale fisheries. These fisheries support over 90% of the world’s capture fishers and fish workers and annually produce some 37 million tonnes of fish. The fishing operations by the 2.6 million motorized small fishing vessels (of <12 m length overall) face increasing risks from climate change, related extreme weather events and less predictable sea conditions. Yet, their insurance coverage remains low, at just 5 percent of these small fishing vessels. For insurers and brokers, this presents not just a protection gap—but a business opportunity.
Recognizing this, the Food and Agriculture Organization of the United Nations (FAO) — supported by Lloyd’s Register Foundation— has recently published two new technical guidelines designed to build a more robust risk management framework for this underserved sector:
Guidelines for the Seaworthiness and Safety Inspection of Small Fishing Vessels https://doi.org/10.4060/cd4894en
Guidelines for Insurance Value and Risk Assessment of Small Fishing Vessels https://doi.org/10.4060/cd5007en
Together, these guidelines offer practical tools to assess, document and improve fishing vessel conditions and standardize their valuation—critical components enabling insurability. They help manage risks involved in insuring small fishing vessels and bridge the information gap that has often excluded small-scale fishers from services by marine insurers.
With a global momentum for inclusive insurance and sustainable blue economies, forward-looking insurers have a unique chance to expand their portfolios while supporting resilience at the ocean’s frontline. Beyond its positive financial returns [as fisheries insurance has proven to be generally profitable], offering protection to small-scale fishers aligns with ESG objectives, marine stewardship, and the United Nations Sustainable Development Goals.
Investments in vessel insurance schemes and group coverage models have already shown success in pilot programmes across Asia, Africa, and Latin America. Now, with FAO’s new guidance and growing digital tools for insurance application, risk monitoring and claims, the path to scalable underwriting of small fishing vessels is clearer than ever.
Marine insurers, brokers and re-insurers are invited to explore how their expertise can be adapted to protect fishing communities and unlock this market potential. The ocean connects us all, and small-scale fishers are vital to food security, livelihoods, and sustainable marine resource use.
It’s time to bring them under the protective umbrella of marine insurance.
Raymon and colleagues discussed this issue in a recent IUMI webinar that is free to access here Barriers to insurance cover for small fishing vessels – and how to overcome them | IUMI
