ILRI’s Index Based Livestock Insurance (IBLI) program and Takaful Insurance of Africa are this year’s winners of the prestigious Insurance Innovations Award 2017. The announcement was made at the African Reinsurance Corporation (Africa Re)’s Insurance Awards gala dinner held on Monday 22 May 2017, at the Serena Kigo Hotel, in Kampala, Uganda.
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.
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).