1. The document summarizes Nyala Insurance's experience providing microinsurance in Ethiopia from 2007-2010, including multiperil crop insurance and weather index crop insurance. 2. It identifies lessons learned, such as lack of farmer awareness and affordability issues, insufficient insurer data and capacity, and a need for better coordination between stakeholders. 3. Recommendations are made to enhance education and training, make farmer livelihoods the priority, establish a legal framework, improve products and processes, and foster collaboration across government, insurers, donors and banks.

1. Conference on New Directions for Smallholder Agriculture Nahu-Senaye Araya, CEO, Nyala Insurances The Ethiopian Experience On Micro Insurance Session 5, Breakout Session 11

5. II. NYALA’S EXPERIENCE DELIVERY CHANNEL We Care We Protect PAYMENT STATEMENT POLICY HOLDER CERTIFICATE HOLDER CLAIMANT

6. We Care We Protect B. NYALA’S EXPERIENCE: 2007 TO DATE:- B1. Multiperil Crop Insurance (MPCI) – Crop Yield, Flood, etc Year Region No. Household Crop Type Total Ha Ave. Sum insured ‘ 000s‘Birr Premium ‘ 000s Birr Rate % Claim ‘ 000s Birr Ratio % Technical Support 2007 Oromia 120 Wheat, Teff, HB 246.16 2.05 664 31, 4.71 Nil - Nyala Covers + Swiss Re 2008 Oromia“ 827 Wheat, Teff, HB 777.83 0.94 3,076, 145 4.71 91 63.1 “ 2009 Oromia“ 676 Wheat, Teff, CP 317.42 0.47 3,372, 179 5.31 No - “ Tot ------ 1,623 1,341.41 0.83 7,113 355 5.0 91 25.74

7. B2 . WEATHER INDEX CROP INSURANCE (WICI) – COVERS DROUGHT ONLY) We Care We Protect Year Region No. Household Crop Total Ha Average HA/HH Sum insured’000s Birr Premium ‘000s Birr Rate % Claim “ 000s Birr Ratio % Support 2009 Oromia 137 Haricot Bean 159.75 1.17 639 73 11.50 309 420.6 WFP Tigrai 200 Teff 21.0 0.11 115 28 23.90 Nil Nil OXFAM A. 2010 Tigray 1,309 Teff, Wheat/ 147.05 0.11 974 357 36.64 Nil Nil OXFAM A. Oromia 290 Barely, Maize 208.00 0.72 418 83 19.96 Nil Nil IFPRI Amhara 32 Sorghum, & 12.75 0.40 26 3 10.20 Nil Nil IFPRI SNNPR 452 Teff 199.18 0.44 396 73 18.57 Nil Nil IFPRI Total 2,420 447.7 0.31 2,567 617 20.13 309 50.10 -

8. We Care We Protect B3. COMBINED MPCI & WICI- 2007 TO 2010 Household Total HA Average HA/HH Sum Insured “ 000s Birr Premium ‘000S Birr Rate % Claim ‘ 000S Birr Ratio % Support 4,043 2,089.14 0.52 9,680 973 6.38 401 41.2 WFP, OXFAM & IFPRI