Explanation of the key features of the Marsabit contract.

Designed to provide compensation in the event of widespread drought –related livestock losses.

The Index

Predicted area-based livestock mortality

The Insurable Livestock Unit

Camel, Cattle, Sheep and Goat

Insurance provided on standardized Tropical Livestock Unit (TLU)

1 Cattle = 1 TLU.

1 Camel = 1.4 TLU.

1 TLU = Ksh 15,000

Premiums for contract with trigger level 15%, providing annual coverage with two potential payout periods

To insure 15TLU valued at Ksh 225,000

Upper Marsabit: Ksh 12, 375

Exploit Current Data Sets

USAID Pastoral Risk Management Project (PARIMA)

5 locations (Dida Hara, Dillo, Finchawa, Qorate and Wachille)

Quarterly from 2000 – 2002

Desta 17-year herd recall data (1980-1997)

Our impact evaluation strategy in Marsabit:

Baseline of 920 households with 3 annual repeats

Should allow us to rigorously establish impacts directly attributable to IBLI

Discount coupons and educational games to encourage uptake

Our Marsabit Partners included:

Technical Partners (ILRI, Cornell, BASIS CRSP, University of Syracuse)

Commercial Partners (Equity Insurance Agency, UAP Insurance Co., Swiss Re)

Development Partners (Financial Sector Deepening Trust, Food for the Hungry, Hunger Safety Net Program…)

Government of Kenya (Arid Land Resource Management Program)