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In recent times, the aquaculture industry has experienced dramatic growth. The growth of the industry is a direct result of an increase in demand for seafood, and a decrease in supply from wild fisheries. The industry, however, is also experiencing growing pains. Aquaculture species, compared to their wild counterparts, are at a higher risk of catastrophic loss from a variety of different perils. These perils make investment in the aquaculture industry significantly risky. The federal crop insurance program could be a tool that mitigates these risks, but the program was designed around terrestrial agriculture, and while aquaculture may be covered .
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The extent to which this will reduce overall premiums depends on the scale and concentration of the players. Insurers with the scale, relationships, and willingness to offer stop loss or other forms of catastrophic coverage policies may see this business to business channel increase in volume and importance. Additionally, regulators may require such policies to ensure coverage in the event of mass correlated loss events resulting from the malfunction of driving systems, such as a hacking incident. Correspondingly, the frequency of both auto physical damage APD and driver liability claims will decline on a per mile basis as technology advances reduce human error figures 4 and 5. This effect will vary by vehicle type: Cars with more autonomous features will see greater reductions than those without. It will also vary by region—more densely populated urban areas, where analysts expect autonomous vehicles to proliferate first, will see a greater relative decrease than rural areas.