Andrew G. Mude (ILRI). Building Climate Resilient Livelihoods through Index-Insurance in Northern Kenya. Presented at CCAFS Science Meeting, 1-2 December 2010
This document provides suggestions for developing outcome indicators to measure the success of an affordable housing program. It includes an outcomes sequence chart that maps intermediate and end outcomes. Candidate outcome indicators are listed for each outcome, along with suggested data sources. Some indicators measure outputs, access to housing, applications, neighborhood support, housing opportunities, safety, and long-term housing stability. The document emphasizes starting small and obtaining stakeholder input when selecting indicators.
Women value local community-based organizations (CBOs) more than men, as CBOs provide women with access to credit and social protection. The research found that women named more organizations focused on food security, particularly those working to increase food availability. However, women expressed a gap in organizations addressing food access and utilization. The document recommends that policies and programming should explicitly target women and other vulnerable groups. Efforts are needed to strengthen adaptive capacity at the community level and coordinate organizations working in the same area. Adaptive capacity work should involve and support existing community groups, especially women's groups.
Presentation by Noemi Gonda at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
Presentation by Pham Thu Thuy at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
Esta es una herramienta en construccion;
•Nos gustaria incorporar vuestras sugerencias.
•Ayudar a los decisores de política y otros actores público-privados a entender las fuentes de los GEI y opciones de mitigacion.
Presentation by Jacob van Etten at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
RBM for climate change adaptation and mitigation.
Presented in January 2015, by Bruce Campbell, Phil Thornton, Ana María Loboguerrero and Pramod Aggarwal.
CGIAR Research Program on Climate Change, Agriculture, and Food Security (CCAFS).
This document provides suggestions for developing outcome indicators to measure the success of an affordable housing program. It includes an outcomes sequence chart that maps intermediate and end outcomes. Candidate outcome indicators are listed for each outcome, along with suggested data sources. Some indicators measure outputs, access to housing, applications, neighborhood support, housing opportunities, safety, and long-term housing stability. The document emphasizes starting small and obtaining stakeholder input when selecting indicators.
Women value local community-based organizations (CBOs) more than men, as CBOs provide women with access to credit and social protection. The research found that women named more organizations focused on food security, particularly those working to increase food availability. However, women expressed a gap in organizations addressing food access and utilization. The document recommends that policies and programming should explicitly target women and other vulnerable groups. Efforts are needed to strengthen adaptive capacity at the community level and coordinate organizations working in the same area. Adaptive capacity work should involve and support existing community groups, especially women's groups.
Presentation by Noemi Gonda at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
Presentation by Pham Thu Thuy at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
Esta es una herramienta en construccion;
•Nos gustaria incorporar vuestras sugerencias.
•Ayudar a los decisores de política y otros actores público-privados a entender las fuentes de los GEI y opciones de mitigacion.
Presentation by Jacob van Etten at the Closing the gender gap in farming under climate change event on 19 March 2015 in Paris.
More about the event: http://ccafs.cgiar.org/closing-gender-gap
RBM for climate change adaptation and mitigation.
Presented in January 2015, by Bruce Campbell, Phil Thornton, Ana María Loboguerrero and Pramod Aggarwal.
CGIAR Research Program on Climate Change, Agriculture, and Food Security (CCAFS).
Practices and enabling conditions for CSA: current status in seven countries in Latin America
Presentation by Claudia Bouroncle at the 3rd Global Science Conference on Climate-Smart Agriculture in Montpellier.
Read more: http://ccafs.cgiar.org/3rd-global-science-conference-%E2%80%9Cclimate-smart-agriculture-2015%E2%80%9D#.VRurLUesXX4
1) Integrated shrimp-rice farming is a widespread practice in the Mekong Delta of Vietnam that provides economic and environmental benefits as a strategy to cope with climate change.
2) The study found that shrimp-rice farming provides higher household incomes, food security, and resilience compared to mono-shrimp farming while reducing greenhouse gas emissions through lower chemical and fertilizer usage.
3) Farmers perceive shrimp-rice as an effective climate-smart agriculture practice that increases adaptation to climate change impacts through higher incomes, food production, and reduced risks from climate events and disease outbreaks.
This is a presentation by Clare Stirling at the integrated agricultural production and food security forecasting system for East Africa Planning Workshop in Nairobi, Kenya
This document discusses the impacts of climate change on agriculture and food security. It notes that agriculture is vulnerable to climate change, which can reduce crop yields through higher temperatures and changes in precipitation patterns. This threatens global food security, particularly for vulnerable populations in developing countries. The document also examines how climate change may exacerbate issues like increased food prices, reductions in calorie availability and child malnutrition, changes in water availability, and more frequent extreme weather events. It provides examples of how land use and cover changes can impact and be impacted by climate change on local to global scales.
The document discusses opportunities and challenges related to adapting agriculture to climate change. It proposes three objectives: 1) developing adapted farming systems using integrated technologies and policies, 2) breeding strategies to address climate stresses, and 3) identifying and deploying genetic diversity for adaptation. Specific initiatives are highlighted, such as multi-site agricultural trials, farmer exchanges, and a knowledge sharing platform, to support achieving the objectives.
Sustainable livestock insurance for pastoralists: From research to practice a...ILRI
This document discusses index-based livestock insurance (IBLI) as a tool to help pastoralists in sub-Saharan Africa manage risks from drought. It notes that over 50 million pastoralists depend on livestock for their livelihoods but face major losses from drought. IBLI uses satellite data on vegetation levels rather than individual livestock losses to trigger payouts when forage is low. The document outlines the development and testing of IBLI contracts in Kenya and Ethiopia, challenges in scaling up adoption, and factors influencing uptake like price, contract design, and household characteristics.
Index-Based Livestock Insurance (IBLI): Preliminary findings on the positive ...ILRI
This document summarizes research on Index-Based Livestock Insurance (IBLI) in East Africa. The key points are:
1) IBLI aims to provide drought insurance for pastoralists using satellite data to track vegetation levels, since individual livestock losses are too costly to insure. While imperfect, it can help mitigate poverty from drought.
2) Uptake of IBLI in pilot programs was significant, though many did not renew. Price, design risks, and understanding affected purchase rates.
3) Research found IBLI reduced distress coping strategies after drought, increased investments and income, and improved subjective well-being, showing its benefits despite basis risk.
Index Based Livestock Insurance Toward Sustainable Livestock Insurance for Pa...essp2
Index-based livestock insurance (IBLI) aims to provide sustainable insurance for pastoralists. While initial IBLI contracts demonstrated benefits, they had significant "basis risk" due to incomplete coverage. Overcoming barriers to scaling up IBLI requires addressing: 1) index design and data issues to minimize basis risk; 2) building effective demand through education given clients' lack of insurance experience; 3) developing low-cost delivery mechanisms using technology; and 4) establishing an enabling policy and institutional infrastructure with defined public and private sector roles. Progress has been made in contract and index design, demand creation, and delivery mechanisms to move IBLI programs towards greater scale and sustainability.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development, December 3rd, 2015 in Addis Ababa Ethiopia, Andrew Mude of the International Livestock Research Institute presented on the challenges and promises of implementing index-based livestock insurance
Implementing IBLI in Northern Kenya and investigating feasibility in Southern...ILRI
Presented by Andrew G. Mude at the Workshop on Developing Index-Based Livestock Insurance to Reduce Vulnerability due to Drought-related Livestock Deaths, ILRI, Addis Ababa, Ethiopia, 12 July 2010.
The Favorable Impact of Index-Based Livestock Insurance (IBLI): Results among...essp2
1) Index-based livestock insurance (IBLI) was piloted among pastoralists in Ethiopia and Kenya to provide a timely payout after drought events in order to help herders recover losses. 2) Uptake of IBLI was significant initially but repurchase rates declined, though IBLI was still found to improve household welfare by reducing distress livestock sales, increasing veterinary expenditures and milk productivity. 3) While IBLI does not eliminate all risk, it was shown to improve household subjective well-being and resilience to drought compared to going without any insurance.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development, December 3rd, 2015 in Addis Ababa Ethiopia, Chris Barret of Cornell University presented on the favorable impacts of implementing index-based livestock insurance.
1) Oxfam America presented on their HARITA project in Ethiopia, which provides climate risk insurance to smallholder farmers.
2) The project aims to expand insurance to more villages with a grant from the Rockefeller Foundation to test crop insurance for irrigated farms and install more weather stations.
3) Early results found farmers benefited from insurance through increased yields and resilience. However, challenges remain around financial literacy, limited local insurers, and the need for supportive policies.
Presentation by A Shee, International Livestock Research Institute, at the CCAFS Workshop on Institutions and Policies to Scale out Climate Smart Agriculture held between 2-5 December 2013, in Colombo, Sri Lanka.
Presented by Francesco Fava at the Index-Insurance for Livestock in the IGAD Region Ministerial Policy Roundtable and Technical Workshop, ILRI, Addis Ababa, 24-26 June 2019
Practices and enabling conditions for CSA: current status in seven countries in Latin America
Presentation by Claudia Bouroncle at the 3rd Global Science Conference on Climate-Smart Agriculture in Montpellier.
Read more: http://ccafs.cgiar.org/3rd-global-science-conference-%E2%80%9Cclimate-smart-agriculture-2015%E2%80%9D#.VRurLUesXX4
1) Integrated shrimp-rice farming is a widespread practice in the Mekong Delta of Vietnam that provides economic and environmental benefits as a strategy to cope with climate change.
2) The study found that shrimp-rice farming provides higher household incomes, food security, and resilience compared to mono-shrimp farming while reducing greenhouse gas emissions through lower chemical and fertilizer usage.
3) Farmers perceive shrimp-rice as an effective climate-smart agriculture practice that increases adaptation to climate change impacts through higher incomes, food production, and reduced risks from climate events and disease outbreaks.
This is a presentation by Clare Stirling at the integrated agricultural production and food security forecasting system for East Africa Planning Workshop in Nairobi, Kenya
This document discusses the impacts of climate change on agriculture and food security. It notes that agriculture is vulnerable to climate change, which can reduce crop yields through higher temperatures and changes in precipitation patterns. This threatens global food security, particularly for vulnerable populations in developing countries. The document also examines how climate change may exacerbate issues like increased food prices, reductions in calorie availability and child malnutrition, changes in water availability, and more frequent extreme weather events. It provides examples of how land use and cover changes can impact and be impacted by climate change on local to global scales.
The document discusses opportunities and challenges related to adapting agriculture to climate change. It proposes three objectives: 1) developing adapted farming systems using integrated technologies and policies, 2) breeding strategies to address climate stresses, and 3) identifying and deploying genetic diversity for adaptation. Specific initiatives are highlighted, such as multi-site agricultural trials, farmer exchanges, and a knowledge sharing platform, to support achieving the objectives.
Sustainable livestock insurance for pastoralists: From research to practice a...ILRI
This document discusses index-based livestock insurance (IBLI) as a tool to help pastoralists in sub-Saharan Africa manage risks from drought. It notes that over 50 million pastoralists depend on livestock for their livelihoods but face major losses from drought. IBLI uses satellite data on vegetation levels rather than individual livestock losses to trigger payouts when forage is low. The document outlines the development and testing of IBLI contracts in Kenya and Ethiopia, challenges in scaling up adoption, and factors influencing uptake like price, contract design, and household characteristics.
Index-Based Livestock Insurance (IBLI): Preliminary findings on the positive ...ILRI
This document summarizes research on Index-Based Livestock Insurance (IBLI) in East Africa. The key points are:
1) IBLI aims to provide drought insurance for pastoralists using satellite data to track vegetation levels, since individual livestock losses are too costly to insure. While imperfect, it can help mitigate poverty from drought.
2) Uptake of IBLI in pilot programs was significant, though many did not renew. Price, design risks, and understanding affected purchase rates.
3) Research found IBLI reduced distress coping strategies after drought, increased investments and income, and improved subjective well-being, showing its benefits despite basis risk.
Index Based Livestock Insurance Toward Sustainable Livestock Insurance for Pa...essp2
Index-based livestock insurance (IBLI) aims to provide sustainable insurance for pastoralists. While initial IBLI contracts demonstrated benefits, they had significant "basis risk" due to incomplete coverage. Overcoming barriers to scaling up IBLI requires addressing: 1) index design and data issues to minimize basis risk; 2) building effective demand through education given clients' lack of insurance experience; 3) developing low-cost delivery mechanisms using technology; and 4) establishing an enabling policy and institutional infrastructure with defined public and private sector roles. Progress has been made in contract and index design, demand creation, and delivery mechanisms to move IBLI programs towards greater scale and sustainability.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development, December 3rd, 2015 in Addis Ababa Ethiopia, Andrew Mude of the International Livestock Research Institute presented on the challenges and promises of implementing index-based livestock insurance
Implementing IBLI in Northern Kenya and investigating feasibility in Southern...ILRI
Presented by Andrew G. Mude at the Workshop on Developing Index-Based Livestock Insurance to Reduce Vulnerability due to Drought-related Livestock Deaths, ILRI, Addis Ababa, Ethiopia, 12 July 2010.
The Favorable Impact of Index-Based Livestock Insurance (IBLI): Results among...essp2
1) Index-based livestock insurance (IBLI) was piloted among pastoralists in Ethiopia and Kenya to provide a timely payout after drought events in order to help herders recover losses. 2) Uptake of IBLI was significant initially but repurchase rates declined, though IBLI was still found to improve household welfare by reducing distress livestock sales, increasing veterinary expenditures and milk productivity. 3) While IBLI does not eliminate all risk, it was shown to improve household subjective well-being and resilience to drought compared to going without any insurance.
At the Workshop on Innovations in Index Insurance to Promote Agricultural and Livestock Development, December 3rd, 2015 in Addis Ababa Ethiopia, Chris Barret of Cornell University presented on the favorable impacts of implementing index-based livestock insurance.
1) Oxfam America presented on their HARITA project in Ethiopia, which provides climate risk insurance to smallholder farmers.
2) The project aims to expand insurance to more villages with a grant from the Rockefeller Foundation to test crop insurance for irrigated farms and install more weather stations.
3) Early results found farmers benefited from insurance through increased yields and resilience. However, challenges remain around financial literacy, limited local insurers, and the need for supportive policies.
Presentation by A Shee, International Livestock Research Institute, at the CCAFS Workshop on Institutions and Policies to Scale out Climate Smart Agriculture held between 2-5 December 2013, in Colombo, Sri Lanka.
Presented by Francesco Fava at the Index-Insurance for Livestock in the IGAD Region Ministerial Policy Roundtable and Technical Workshop, ILRI, Addis Ababa, 24-26 June 2019
Insuring against the weather using traditional groupsessp2
This document summarizes a study on using traditional risk-sharing groups in Ethiopia to promote index-based weather insurance. The study found that weather risk is a major challenge for farmers and that insurance could help but demand is low due to basis risk. The study conducted a randomized experiment providing insurance to individual households and groups both with and without mandated sharing rules. It found that insurance uptake increased more for groups, especially those with mandated rules. Groups also saw improved access to loans/grants. The study provides evidence that integrating formal insurance with strengthened informal groups can increase welfare by addressing correlated and individual risks. It implies traditional groups have potential for scaling insurance if rules are institutionalized.
Adapting Index-based Livestock Insurance (IBLI) for Ethiopia: Logic and designILRI
Presented by Christopher B. Barrett (Cornell University) at the workshop on developing index-based livestock insurance to reduce vulnerability due to drought-related livestock deaths, ILRI, Addis Ababa, Ethiopia, 12 July 2010.
Dynamic Effects of Index Based Livestock Insurance on Household Intertemporal...ILRI
This document summarizes the findings of a study that used an economic model to examine the dynamic effects of index-based livestock insurance (IBLI) on pastoralist households' intertemporal behavior and welfare in northern Kenya. The model predicted that IBLI would induce households to increase herd sizes by reducing risk, but also potentially lead to overgrazing. However, the model over-predicted insurance purchases and livestock sales compared to actual household data. The researchers plan to refine the model by allowing livestock values to vary over time and including learning dynamics around the insurance payout function.
Design and development of IBLI for southern EthiopiaILRI
This document discusses the design and development of an index-based livestock insurance (IBLI) program for southern Ethiopia. The key points are:
1) The objective is to assess the viability and poverty reduction impacts of index insurance and determine how these impacts can be realized and sustained over time.
2) Steps include designing an IBLI product focused on livelihoods, identifying a suitable contract structure and delivery mechanisms, and addressing impacts of climate change.
3) Existing longitudinal household and climate data will be used to design the IBLI program and evaluate its impacts through a baseline survey and repeated annual surveys of 920 households.
The document summarizes a field experiment conducted in Ethiopia to test the impact of providing index-based rainfall insurance to informal risk-sharing groups. The experiment randomized the type of training provided to group leaders on the insurance product, with some receiving individual-focused training and others receiving group-focused training emphasizing risk-sharing. Preliminary results found higher insurance take-up rates among members of groups whose leaders received the group risk-sharing training compared to individual training, suggesting such group-level products have potential to increase demand for index insurance.
Index-insurance to protect pastoralists from drought shocksILRI
Presented by Francesco Fava, ILRI, at the International Committee of the Red Cross (ICRC) Agro-Livestock Workshop–Climate Risks and Innovation in Conflict affected areas Linked to Agro/Livestock Production, Nairobi, 4 December 2019
The Accelerating Impact of CGIAR Climate Research for Africa (AICCRA) project works to deliver a climate-smart African future driven by science and innovation in agriculture.
AICCRA does this by enhancing access to climate information services and climate-smart agricultural technology to millions of smallholder farmers in Africa.
With better access to climate technology and advisory services—linked to information about effective response measures—farmers can better anticipate climate-related events and take preventative action that help communities better safeguard their livelihoods and the environment.
AICCRA is supported by a grant from the International Development Association (IDA) of the World Bank, which is used to enhance research and capacity-building activities by the CGIAR centers and initiatives as well as their partners in Africa.
About IDA: IDA helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programmes that boost economic growth, reduce poverty, and improve poor people’s lives.
IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa.
Annual IDA commitments have averaged about $21 billion over circa 2017-2020, with approximately 61 percent going to Africa.
This presentation was given on 27 October 2021 by Mengpin Ge, Global Climate Program Associate at WRI, during the webinar "Achieving NDC Ambition in Agriculture" organized by CCAFS, FAO and WRI.
Find the recording and more information here: https://bit.ly/AchievingNDCs
This presentation was given on 27 October 2021 by Sabrina Rose, Policy Consultant at CCAFS, during the webinar "Achieving NDC Ambition in Agriculture" organized by CCAFS, FAO and WRI.
Find the recording and more information here: https://bit.ly/AchievingNDCs
This presentation was given on 27 October 2021 by Krystal Crumpler, Climate Change and Agricultural Specialist at FAO, during the webinar "Achieving NDC Ambition in Agriculture" organized by CCAFS, FAO and WRI.
Find the recording and more information here: https://bit.ly/AchievingNDCs
This presentation was meant to be included in the 2021 CLIFF-GRADS Welcome Webinar and presented by Ciniro Costa Jr. (CCAFS).
The webinar recording can be found here: https://youtu.be/UoX6aoC4fhQ
The multilevel CSA monitoring set of standard core uptake and outcome indicators + expanded indicators linked to a rapid and reliable ICT based data collection instrument to systematically
assess and monitor:
- CSA Adoption/ Access to CIS
- CSA effects on food security and livelihoods household level)
- CSA effects on farm performance
The document discusses plant-based proteins as a potential substitute for animal-based proteins. It notes that plant-based proteins are growing in popularity due to environmental and ethical concerns with animal agriculture. However, plant-based meats also present some health and nutritional challenges compared to animal proteins. The document analyzes opportunities and impacts related to plant-based proteins across Asia, including leveraging the region's soy and pea production and tailoring products to Asian diets and cultural preferences.
Presented by Ciniro Costa Jr., CCAFS, on 28 June 2021 at the Asian Development Bank (ADB) Webinar on Sustainable Protein Case Study: Outputs and Synthesis of Results.
Presented by Marion de Vries, Wageningen Livestock Research at Wageningen University, on 28 June 2021 at the Asian Development Bank (ADB) Webinar on Sustainable Protein Case Study: Outputs and Synthesis of Results.
This document assesses the environmental sustainability of plant-based meats and pork in China. It finds that doubling food production while reducing agricultural greenhouse gas emissions by 73% by 2050 will be a major challenge. It compares the life cycle impacts of plant-based meats made from soy, pea, and wheat proteins and oils, as well as pork and beef. The results show that the crop type and source country of the core protein ingredient drives the environmental performance of plant-based meats. The document provides sustainability guidelines for sourcing ingredients from regions with low deforestation risk and irrigation needs, using renewable energy in production, and avoiding coal power.
This document summarizes a case study on the dairy value chain in China. It finds that milk production and consumption have significantly increased in China from 1978 to 2018. Large-scale dairy farms now dominate production. The study evaluates greenhouse gas emissions from different stages and finds feed production is a major contributor. It models options to reduce the carbon footprint, finding improving feed practices and yield have high potential. Land use is also assessed, with soybean meal requiring significant land. Recommendations include changing feeds to lower land and carbon impacts.
This document summarizes information on the impacts of livestock production globally and in Asia. It finds that livestock occupies one third of global cropland and one quarter of ice-free land for pastures. Asia accounts for 32% of global enteric greenhouse gas emissions from livestock, with most emissions coming from India, China, Pakistan, and Bangladesh. Rapid growth of livestock production in Asia is contributing to water and air pollution through nutrient runoff and emissions. The document discusses opportunities for public and private investment in more sustainable and climate-friendly livestock systems through technologies, monitoring, plant-based alternatives, and policies to guide intensification.
Presentation by Han Soethoudt, Jan Broeze, and Heike Axmann of Wageningen University & Resaearch (WUR).
WUR and Olam Rice Nigeria conducted a controlled experiment in Nigeria in which mechanized rice harvesting and threshing were introduced on smallholder farms. The result of the study shows that mechanization considerably reduces losses, has a positive impact on farmers’ income, and the climate.
Learn more: https://www.wur.nl/en/news-wur/show-day/Mechanization-helps-Nigerian-farms-reduce-food-loss-and-increase-income.htm
Presentation on the rapid evidence review findings and key take away messages.
Current evidence for biodiversity and agriculture to achieve and bridging gaps in research and investment to reach multiple global goals.
The document evaluates how climate services provided to farmers in Rwanda through programs like Participatory Integrated Climate Services for Agriculture (PICSA) and Radio Listeners’ Clubs (RLC) have impacted women and men differently, finding that the programs have increased women's climate knowledge and participation in agricultural decision making, leading to perceived benefits like higher incomes, food security, and ability to cope with climate risks for both women and men farmers.
This document provides an introduction to climate-smart agriculture (CSA) in Busia County, Kenya. It defines CSA and its three objectives of sustainably increasing agricultural productivity and income, adapting and building resilience to climate change, and reducing and/or removing greenhouse gas emissions. It discusses CSA at the farm and landscape scales and provides examples of CSA practices and projects in Kenya. It also outlines Kenya's response to CSA through policies and programs. The document describes prioritizing CSA options through identifying the local context, available options, relevant outcomes, evaluating evidence on options' impacts, and choosing best-bet options based on the analysis.
1) The document outlines an action plan to scale research outputs from the EC LEDS project in Vietnam. It identifies key activities to update livestock feed databases and software, improve feeding management practices, develop policies around carbon tracking and subsidies, and raise awareness of stakeholders.
2) The plan's main goals are to strengthen national feed resources, update the PC Dairy software, build greenhouse gas inventory systems, and adopt standards to reduce emissions in agriculture and the livestock industry.
3) Key stakeholders involved in implementing the plan include the Department of Livestock Production, universities, and ministries focused on agriculture and the environment.
Delivering information for national low-emission development strategies: acti...
Mude - Building Climate Resilient Livelihoods through Index-Insurance in Northern Kenya
1. Building Climate Resilient Livelihoods
Through Index-Insurance:
Piloting IBLI in Northern Kenya
Andrew G. Mude
International Livestock Research Institute
December 2 2010, CCAFS Cancun
2. The Case for IBLI Managing Risk in the ASALs
• ASALs more than half of Africa’s
landmass
• Pastoral livestock production is the
principle livelihood
• Pastoralist livestock and livestock services
comprise a substantial portion of
agricultural GDP for many African
countries.
• ASALs remote, infrastructure deficient,
politically marginalized
• Pastoralists particularly vulnerable to severe
droughts
• Presence of asset-based poverty traps
accentuates the risk
3. The Case for IBLI Insurance and Development
Sustainable insurance can:
• Prevent downward slide of vulnerable populations
• Stabilize expectations & crowd-in investment and
accumulation by poor populations
• Induce financial deepening by crowding-in credit
supply and demand
But can insurance be sustainably offered in rangelands?
Conventional (individual) insurance unlikely to work,
especially among pastoralists:
• Transactions costs
• Moral hazard/adverse selection
4. The Case for IBLI Index Insurance: Advantages
Index insurance avoids problems that make individual
insurance unprofitable for small, remote clients:
• No transactions costs of measuring individual losses
• Preserves effort incentives (no moral hazard) as no
single individual can influence index.
• Adverse selection does not matter as payouts do not
depend on the riskiness of those who buy the insurance
• Available on near real-time basis: faster response than
conventional humanitarian relief
Index insurance can, in principle, be used to create an
effective safety net to alter poverty dynamics and help
address broad-scale shocks
5. The Case for IBLI Index Insurance: Challenges
‘Big 5’ Challenges of Sustainable Index Insurance:
1. High quality data (reliable, timely, non-manipulable, long-
term) to calculate premium and to determine payouts
2. Minimize uncovered basis risk through product design
3. Innovation incentives for insurance companies to design
and market a new product
4. Establish informed effective demand, especially among a
clientele with little experience with any insurance, much
less a complex index insurance product
5. Low cost delivery mechanism for making insurance
available for numerous small and medium scale producers
6. The Case for IBLI Solutions to Challenges
Solutions to the ‘Big 5’ Challenges:
1. High quality data:
• Satellite data (remotely sensed vegetation index: NDVI)
2. Minimize uncovered basis risk:
• Analysis of household data on herd loss
3. Innovation incentives for insurers:
• Researchers do product design work, develop awareness
materials and assist with capacity building
4. Establish informed effective demand:
• Simulation games with real information & incentives
5. Low cost mechanism:
• Delivery through partners
7. The Case for IBLI Remotely Sensed Data
Deviation of NDVI from long-term average
NDVI February 2009, Dekad 3
NDVI Data February 2009, Dekad 3
Real-time
available in 8×8
km2 resolution
27 years
available since
late 1981
NASA NDVI Image Produced By: USGS-EROS Data Center. Source: Famine Early Warning System Network (FEWS-NET)
Laisamis Cluster, zndvi (1982-2008)
Historical droughts
8. The Case for IBLI Livestock Mortality Index
NDVI-based Livestock Mortality Index
IBLI contract is based on area average livestock mortality
predicted by remotely-sensed (satellite) information on
vegetative cover (NDVI):
9. The Case for IBLI Livestock Mortality Index
Geographical Clusters:
Estimate 2 separate livestock
mortality-NDVI response
functions for distinct clusters
in Marsabit District:
-- Chalbi (Upper Marsabit)
(arid, camel-smallstock
based)
-- Laisamis (Lower Marsabit)
(semi-arid, cattle-smallstock
based
10. The Case for IBLI Livestock Mortality Index
Index
Performance
11. The Case for IBLI Livestock Mortality Index
Index Performance
Index predicts large-scale losses very well
12. The Marsabit Pilot
• Launched the pilot in Jan 2010
• Sales beat all expectations
– Almost 2000 contracts sold
– $46,000 in total premiums collected
– Total Value of Livestock Insured 1,193,080
PROMISING
BUT
TOO
EARLY
TO
TELL,
LOTS
OF
LESSONS
TO
LEARN
AND
IMPROVEMENTS
TO
MAKE
13. The Way Forward
Integrated long-term survey design for impact evaluation to
inform program and policy formation
• HH survey in pilot and control locations
• Comparative assessment with unconditional cash transfer
program (the Hunger Safety Nets Program: HSNP)
• Discount coupons randomly allocated to eligible
subpopulations
Scaling up across ASAL regions in Kenya
Investigating feasibility of IBLI in the region – recently
launched a Southern Ethiopia program
14. Research and Policy Questions
Investigate Alternative Contract Structures
• Group-‐based
insurance
markeEng
• Linked
credit
and
insurance
• Risk
layering
• CondiEonal
insurance
transfers
IBLI impact on livestock holdings, spatial distribution and
condition of the rangelands
15. Research and Policy Questions
Determinants of demand and adoption?
Developing processes to establish rules of implementation
amidst challenging public/private relationships
Data availability and collection coupled with improved
response function modelling for better scale-up
17. The Marsabit Pilot Contract Features
• The Risk
• 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)
o 1 Cattle = 1 TLU.
o 1 Camel = 1.4 TLU.
o 1 goat/sheep = 0.1 TLU.
Example: To insure 4 cattle, 7 camel, and 12 goats/sheep,
TLU insured is 4×1 + 7×1.4 + 12×0.1 = 15 TLU.
• Value of the Insured Herd
• 1 TLU = Ksh 15,000
• To insure 15 TLU, insured value is thus: Ksh 225,000
18. The Marsabit Pilot Contract Features
• Payout Structure
• Payouts are made when predicted livestock mortality is above the
“Trigger” index level. Trigger set at 15%
19. The Marsabit Pilot Contract Features
Geographical Coverage
- Two response function clusters ,
Upper and Lower Marsabit
- Index calculated at Division level.
25. How will IBLI work?
Consider 1-year contract for a pastoralist who would like to insure a herd valued at
KSh150,000.
During the sale period at the beginning of the coverage year, he pays an annual
premium (Ksh) = % × insured value
Value of Herd Insured Upper Marsabit Cost Lower Marsabit Cost
(5.5%) (3.25%)
Ksh 150,000 Ksh 8250 Ksh 4875
Depending on Predicted Mortality Index reading in two potential payout periods
across the year, he receives indemnity payment
(KSh) = (predicted mortality rate - M*)% × insured value
Index: Payout rate Total amount paid =
Predicted payout rate*insured value
Mortality
5% 0% 0%*150,000=0 Ksh
15% 15%-15%=0% 0%*150,000=0 Ksh
25% 25%-15%=10% 10%*150,000=15,000 Ksh
35% 35%-15%=20% 20%*150,000=30,000 Ksh
26. Establishing Informed, Effective Demand
Experimental IBLI Game
(i) Teach how IBLI works and how IBLI can affect herd dynamics
(ii) Game with real monetary stakes. Pretested in 2008.
(iii) Used lessons from Game to design extension training program
28. IBLI Contract Sales Figures for Jan/Feb 2010
SHEEP/
TOTAL
VALUE
TO
VALUE
OF
CATTLE
CAMELS
PREMIUM
CONTRACTS
GOATS OF
INSURED
COLLECTED
NO.
NO.
RATE SOLD NO.
LIVESTOCK PREMIUMS
INSURED INSURED
INSURED (USD) (USD)
UPPER 5.5% 556 371 11,081 185 347,620 19,119
LOWER 3.25% 1,423 3537 4,745 154 845,460 27,477
TOTAL 1,979 3908 15,826 339 1,193,080 46,597
• Note:
• Consumer premium rate not total market premiums which
are 9.2% in upper and 5.4% in lower.
29. The Marsabit Pilot Establishing Demand
Some preliminary statistics from WTP study
(1) Proportion of respondents whose WTP exceed the pure premium, and
pure premium+20% loading:
10% Strike 30% Strike
Pure Premium 20% loading Pure Premium 20% loading
50% 34% 69% 69%
(2) And for respondents whose WTP exceeds the pure premium…
Proportion of herd that respondents would like to insure:
Contract type Proportion of Herd would like to insure
1/4 1/2 3/4 Full
10% strike 18% 24% 13% 45%
30% strike 4% 17% 18% 62%