Prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern Region of Ghana

Abstract

Purpose

Aquaculture insurance has the potential of redressing climate-change because it serves as an alternative source of finance in the event of unforeseen circumstances. To this end, the authors examine the prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern region of Ghana.

Design/methodology/approach

A total of 140 fish farmers were sampled for the study. Thematic analysis was used to determine perceived aquaculture insurance prospects. The Heckman's two-stage model, profitability index (PI) and return on investment (ROI) was employed to respectively determine the factors influencing aquaculture insurance participation and amount intensity and the profitability of aquaculture.

Findings

The thematic analysis revealed three themes on the perception of aquaculture insurance prospects: loss recovery, farm renovation and promotes agriculture. Different sets of demographic and institutional factors have varying influences on aquaculture insurance participation and amount intensity. Profitability index (PI) and return on investment (ROI) were respectively 2.07 and 3.2%.

Originality/value

The research provides relevant information on perceived aquaculture insurance prospects, aquaculture insurance participation, and amount intensity and profitability of aquaculture which can contribute to enhancing aquaculture insurance and the aquaculture industry in Ghana.

Citation

Mensah, N.O., Amrago, E.C., Mensah, E.T.D., Asare, J.K. and Anang, S.A. (2021), "Prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern Region of Ghana", World Journal of Science, Technology and Sustainable Development, Vol. 18 No. 4, pp. 494-512. https://doi.org/10.1108/WJSTSD-02-2021-0018