estock Takaful
Potential Distribution Channels
IBLI Policy Workshop: Developing Policy
Innovations for the Pastoralist Rangelands
through Cross-Sector Partnerships
By Hassan Bashir
Tuesday, June 9, 2015

‹#›
TIA’s Broad Objectives
1. To protect pastoralist in Arid regions from extreme
suffering & loss livestock as a result of drought.
2. To educate, create awareness of livestock
insurance within the targeted counties through
practical engagement & awareness campaigns.
3. To upscale IBLT uptake in targeted counties.

‹#›
ASAL Region

‹#›
Major Challenges
a) Reliability of Data (Product)
b) Reachability (Presence)
c) Acceptability (Community)
d) Affordability (Price)
e) Difficulty of Achieving Critical Mass (Volume)
f) Inclusive Nature of Claims Trigger
g) Need for Geographic Diversity

‹#›
TIA IBLT Experience Map

‹#›
TIA Distribution Channel

‹#›
Lead Agent Network

‹#›
IBLT Sales Experience (Wajir)
-
750,000
1,500,000
2,250,000
3,000,000
W1 W2 W3 W4

‹#›
IBLT Sales Experience Combined
-
750,000
1,500,000
2,250,000
3,000,000
Wajir Isiolo Garissa Mandera
W1 W2
W3 W4

‹#›
Payout (Claims) Experience
-
1,250,000
2,500,000
3,750,000
5,000,000
W1 W2 W3 W4
Sales Claims

‹#›
Total Payout Against Premium
-
1,750,000
3,500,000
5,250,000
7,000,000
Sales Claims

‹#›
Summary of IBLT Experience

‹#›
Summary of IBLT Experience
Total Number of Policies 2,395
Number of Shoats Insured 31,323
Number of Cattle Insured 1,355
Number of Camel Insured 2,929
Total Number of Livestock Insured 35,607
Sum Insured 98.3 million

‹#›
Key Stakeholders
Livestock
Asset
Pastoral
Community
Private
Sector
County
Government
Development
Partners
National
Government

‹#›
key Local Stakeholders
1. Community Elders/Opinion Leaders
2. Religious Leaders
3. County and Local Chiefs
4. Members of County Assembly
5. Members of Parliament
6. County Livestock Department
7. Sub-County/Ward Administrators
8. Livestock Extension Officers
9. Local Community Media Houses

‹#›
Key Questions
1. How do we improve the reliability of the base data, so that triggers
reflect reality on the ground?
2. How do we tell the potential impact of climatic changes from window
to window? on sum insured? on price?
3. How do we deal with concentration of risk?
4. How do we deal with the need to geographically diversify & the cost
of doing so?
5. How do reconcile the need for internal capacity & the limited initial
revenue base?
6. How do we scale up to reach large numbers across the ASAL
regions?

‹#›
Key Questions (cont)
7. How do we take pain out of reaching the community?
8. How can we make the product affordable for the community, yet
commercially viable for the insurer?
7. How do we sustain operations in the field long enough to achieve
critical mass?
8. How do we win the patience of Boards & Shareholders if we have to
crawl towards long term commercial viability?
9. How can we create the supporting industry sustainably?
10. How do we create community of acceptance/ownership for long term
sustainability?

‹#›
Thank You