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.

1. Implementing IBLI in Northern Kenya and Investigating Feasibility in Southern Ethiopia AndrewG. Mude (ILRI) Workshop on Developing Index-Based Livestock Insurance to Reduce Vulnerability due to Drought-related Livestock Deaths ILRI, Addis Ababa, Ethiopia 12 July 2010

3. Explanation of the key features of the Marsabit contract.

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

6. The Index

7. Predicted area-based livestock mortality

8. The Insurable Livestock Unit

9. Camel, Cattle, Sheep and Goat

10. Insurance provided on standardized Tropical Livestock Unit (TLU)

11. 1 Cattle = 1 TLU.

12. 1 Camel = 1.4 TLU.

14. 1 TLU = Ksh 15,000

17. IBLI Marsabit: Contract Features Temporal structure of IBLI contract

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

20. To insure 15TLU valued at Ksh 225,000

21. Upper Marsabit: Ksh 12, 375

25. Exploit Current Data Sets

26. USAID Pastoral Risk Management Project (PARIMA)

27. 5 locations (Dida Hara, Dillo, Finchawa, Qorate and Wachille)

28. Quarterly from 2000 – 2002

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

34. Our impact evaluation strategy in Marsabit:

35. Baseline of 920 households with 3 annual repeats

36. Should allow us to rigorously establish impacts directly attributable to IBLI

37. Discount coupons and educational games to encourage uptake

39. Our Marsabit Partners included:

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

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

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

43. Government of Kenya (Arid Land Resource Management Program)