More than 2,250 pastoralists received insurance payouts following the extremely poor rains this year in southern Ethiopia. Low levels of rainfall have led to the loss of approximately 300,000 livestock in 2017 in the Borana zone of the southern Oromia region. The insurance payouts of more than ETB5.233 million (USD220,000) was the largest-ever micro-insurance indemnity made in Ethiopia. Each insured pastoralist received an average of ETB2,255 (USD96), which will allow the herders to purchase feeds for their surviving animals and to restock their herds.
More than Ksh214 million is on tap for 12,000 pastoral households in six counties of northern Kenya through innovative policies that use satellite imagery to trigger payments for feed, veterinary supplies and water.
Insurance that pays out when forage coverage drops—known as index-based livestock insurance—is an elegant idea. Andrew Mude, an economist and principal scientist at ILRI, last month was awarded the Norman Borlaug Award for Field Research and Application. The award, a major prize in agricultural research, is given by the World Food Prize Foundation and financed by the Rockefeller Foundation. Tina Rosenberg covers the story in the New York Times.
Andrew Mude, an economist and principal scientist at ILRI, is being presented with the 2016 Norman Borlaug Award for Field Research and Application today, 12 Oct 2016, for his work leading an innovative livestock insurance program that employs satellite data to help protect livestock herding communities in the Horn of Africa from the devastating effects of drought.
Today, for the first time in Africa, an insurance policy that combines an Islamic-compliant financial instrument with innovative use of satellite imagery is compensating Muslim pastoralists for drought-induced losses suffered in Kenya’s northeastern Wajir County, where livestock are valued at Ksh46 billion (USD550 million).