PREFACE 



The problems of the commercial fishing industry with marine 

 insurance are complicated and controversial. There have been complaints 

 from the fishing industry particuleirly in New England, that the cost of 

 insurance has risen substantially. On the other hand, many insurance 

 firms have withdrawn from the field because of disastrous loss 

 experience. 



This survey is an inquiry into the situations, forces, conditions, 

 and factors which have given rise to the hull and protection and indem- 

 nity insurance problem in the New England, Gulf of Mexico, smd California 

 Areas. It is a piece of basic research aiming at the formulation of a 

 set of recommendartions which may become the basis for policy-making 

 decisions by the United States Government. 



The report consists of two parts each in a separate publication. 

 A summary of conclusions and recommendations, an extensive discussion 

 of the insurance problem and two appendices which contain the basic 

 tables and a summary of sampling techniques are included in this 

 publication. A supplement contains a description of accidents, the 

 owner's reasons for insurance coverage, and his occupational activities 

 together with comments made by the interviev/ed vessel ovmers on the huH 

 and protection and indemnity insurance problem. A liraited supply of the 

 supplements is available and will be furnished to inquirers with a spe- 

 cific interest who malce a request for it. 



The survey was sponsored by the Fish and Wildlife Service of the 

 United States Itepartment of the Interior under a Saltons tall-Kennedy 

 Act research contract. Tlie major researchers and authors of this 

 report are deeply Indebted to Dr. Richard A. Kahn, Mr. Walter H. 

 Stolting, and Mr. Noriar Pahigian of the Branch of Economics in the 

 Bureau of Commercial Fisheries, United States Fish and Wildlife Service 

 for their cooperation. Gratitude is also expressed to the two advisors 

 for the study. Dr. Ralph H. Blanchard, Professor of Insurance at 

 Columbia University, and Dr. Donald J. 1-7hite, Assistant Dean at the 

 College of Business Administration of Boston College, for their con- 

 sultation services in the various stages of the project. A great deal 

 of the credit should go to Dr. James W. Kelley, Professor of Economics 

 and Director of the Bureau of Business Reseaxch in the College of 

 Business Administration of Boston University, for his assistance in 

 the capacity of advisor and administrative coordinator of the project 

 and for his unlimited patience in the twenty-five months of research 

 effort. 



Ill 



