Status of Index-insurance in
the IGAD region
Francesco Fava
INDEX-INSURANCE FOR LIVESTOCK IN THE IGAD REGION
MINISTERIAL POLICY ROUNDTABLE & TECHNICAL WORKSHOP
ILRI Campus, Addis Ababa, 24-26 June 2019

Africa Classification for Index-insurance for
livestock “Relevance Zones”
(Mills et al., 2017 ILRI Brief)

Scaling IBLI – Ongoing work
Current coverage, East Africa

Uganda -
karamoja
Somalia
Ethiopia
Kenya
Fava et al., (2018)
TOWARD SUSTAINABLE SCALING Eritrea
S.Sudan
Djibouti-
• Idea conceptualization: problem statement and conceptual framework design based on direct
experiences, literature review and interactions with index-insurance actors.
3-6m
• Feasibility assessment (country level): agro-ecological context, product technical design
suitabiliy, rural development and macroeconomic context, natural hazard vulnerability, potential demand for
insurance, weather/satellite/agricultural data infrastructure, private insurance infrastructure, distribution
channels, institutional context and capacity, existing policies, legal & regulatory environment,
stakeholders/partners interest and capacity, ongoing related projects and initiatives, potential for financial
support.
6m-1y
• Preparation (sub-country level): pilot area(s) identification, initial product design, risk modelling
and pricing, product design tools (i.e. pricing, claim settlments, etc) development, public/private
stakeholders/partners engagement at local and national level, capacity needs assessment, cap. dev. material
development, detailed market study, implementation model design (i.e. distribution mechanism), implementation
tools development (e.g. sales platform), legal/regulatory product approval process, design of M&E framework and
baseline, funding mechanism and source identification.
3-5yrs
• Implementation: testing and implementation of all components of the insurance program. Refinement of
product design in response to stakeholders feedback and validation studies, generate evidences of impact, support
informed demand, support policy and regulatory infrastructure, develop cost-effective delivery channels, refine
business and implementation models, multi-level capacity building.
- • Support Actions for Sustainable scaling: target actions and interventions to support enabling
conditions for program scaling and long-term sustainability.

Somalia -Extent of rangelands
Extensive rangelands dominate in Somalia, particularly in the northern and central regions
Mixed/cropland systems found in the southern regions of Juba, Shabelle and Bay
Mixed systems not fully suitable for IBLI implementation

Somalia- Forage availability
Based on the NDVI signal
NDVI signal is sufficiently clear and strong for
the majority of Somalia
Low NDVI signal in a significant portion of the
northern regions (Sanaag, Bari, and Woqooyi
Galbeed), dominated by barren lands

Somalia - Seasonality
Bimodal rainfall and vegetation growth patterns are generally observed
Seasons are clearly defined:
 Long rains – approx. March to June
 Short rains – approx. October to December
 Unimodal/unclear seasonality – observed in limited areas in the northern coastal regions

Technical Suitability - summary
Combines the 3 premises required for successful
IBLI implementation
About ~70% percent of Somalia has the
agroecological characteristics suitable
for IBLI implementation
~6% require a more in-depth analysis to
assess if an accurate index could be
designed based on rangeland
dominance and forage availability
(NDVI signal validity)
~24% of the UAIs (districts) were
unsuitable for IBLI (red regions)
Open question: migration patterns and cross-
borders transhumance.
0 250 500km
0
4
8
12
42.5 45.0 47.5 50.0
LongitudeLatitude
Feasibility
Unsuitable
IBLI Suitable
Range Review
Forage Review
IBLI Feasibility Map

Work with countries
• What is the objective and scope for index-insurance?
• What type of scheme (micro, meso, macro)?
• What is the potential role of the public and private sectors?
• What are the key needs to move to the next stage?
 Road map toward implementation

Today
• We form 7 groups (1 per country – contact person)
• Evening: country teams discuss and begin drafting ideas (on ppt)
• Continuation of the discussion (breakout session) with experts and
finalization
• Presentations
Tomorrow