The Egyptian Insurance Union has emphasized the importance of transitioning to smart aquaculture, highlighting its role in bolstering project resilience against losses and enabling early risk response. By leveraging sensors, monitoring systems, artificial intelligence, and the Internet of Things, smart aquaculture can monitor water quality, stock health, and equipment efficiency. This integrated approach can minimize potential losses, such as stock mortality and production halts.
According to the Insurance Union, global aquaculture production reached a record 142 million tons in 2026, with 103 million tons from aquatic animals and 39 million tons from algae. This growth is driven by increasing demand for aquatic food and relatively stable natural fisheries production. However, the expansion of aquaculture has also led to a rise in the value of live stock, assets, and equipment exposed to risks, particularly with increased stocking density and reliance on critical equipment.
The Insurance Union notes that traditional risk management in aquaculture has primarily relied on worker expertise, visual inspections, and water sampling at specific times. However, these methods may not detect rapid changes occurring between inspection periods, especially in high-density projects. In contrast, smart aquaculture integrates sensors, cameras, communication devices, and alarm systems within an interconnected operating system, enabling real-time monitoring of critical parameters.
The Insurance Union cites a study that developed a model to predict changes in dissolved oxygen levels using historical data and environmental indicators, achieving an accuracy of 92.28%. This demonstrates the potential of leveraging data to support preventive decisions. However, the union also warns that technology adoption does not eliminate risks, but rather introduces new exposures, such as sensor malfunction or data loss.
The Insurance Union stresses that the effectiveness of smart aquaculture is not measured by the number of sensors or data volume, but rather by the accuracy of measurements, alarm thresholds, and response times. It also emphasizes the importance of developing a unified framework for minimum operational data that projects should record and retain, considering variations in farmed species, production systems, and project sizes.
The Insurance Union recommends evaluating digital technologies based on their actual ability to reduce losses, rather than the number of indicators and functions they provide. It also advocates for balancing automation with human expertise, ensuring that analytical models support decision-making without replacing technical oversight and veterinary inspection.
The Insurance Union concludes that the success of smart aquaculture depends on converting data into actionable decisions and procedures that minimize potential losses and mitigate their impacts. This, in turn, can enhance the role of sustainable insurance in protecting investments linked to digital transformation and reducing the frequency of incidents.
Key points
- The Egyptian Insurance Union promotes smart aquaculture to reduce losses and enhance project sustainability.
- Smart aquaculture leverages sensors, monitoring systems, and artificial intelligence to monitor water quality, stock health, and equipment efficiency.
- The Insurance Union emphasizes the importance of balancing automation with human expertise in smart aquaculture.
