Index-insurance to protect pastoralists from drought shocks

-- um ILRI
3. Feb 2020
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
Index-insurance to protect pastoralists from drought shocks
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Index-insurance to protect pastoralists from drought shocks

Hinweis der Redaktion

  1. Here there is not much to add to the slide content. The message is: livestock is central for the country economy and for a substantial fraction of the population
  2. In E. African drylands livestock is essential for household welfare and livelihood. Pastoralists have strategies to cope with drought, but environmental and climatic changes are increasing the vulnerability of these already fragile populations and decreasing the efficiency of traditional coping strategies (such as destocking and migration)
  3. Drought has catastrophic impacts on livestock assets and when pastoralists lose their animals there are evidences they are not able to recover and remain trapped into permanent poverty Standard response interventions (cash transfer/food aid) are extremely costly and happen too late, when drought is already impacting key assets and livelihoods.
  4. Here it is mostly all written. The cash/food aid logic of humanitarian response is now shifting toward a disaster risk financing approach toward effective early response. Early saving response allow early action toward prevention of major impacts on livestock and livelihood which is much more efficient. Here you can mention that EO is playing a growing role in triggering financial response mechanisms.
  5. IBLI works with this logic. It is an index-insurance product designed to provide timely payouts to pastoralists to protect their livestock in case of drought. Timely means that payouts given early in the growing season in case of there is a deficit in forage production. Thus payouts are given before the dry seasons when grazing resources would be quickly depleted and livestock will start to starve.
  6. IBLI is an index-insurance product. Traditional insurance (claim based, like the car ones) cannot work in these remote and low populated contexts because of the high transaction costs in verifying the claims. Instead index-insurance is based on an objective INDEX of the risk. If the index falls below a pre-agreed level, then payout are given independently from a claim process. No verification. The INDEX is based on EO-based indicators in most cases.
  7. Just read. Plans to scale up KLIP up to 100k households. Feasibility analyses done in Somalia, Uganda, Niger and several other countries are asking
  8. Several ingredients are necessary to make a disaster risk financing solution work. As listed. However, one critical area of interest for the EO community, is product design. It is of paramount importance of accurately assessing the risk you are covering and the potential of EO methods is huge in this respect and yet poorly explored. This is a clear case on EO technologies delivering impact. - Evidence of value and impact refers to impact studies demonstrating the benefits of IBLI for household welfare and copying strategies (vast literature) - Informed demand refers to awareness creation and capacity building efforts Supply chain refers to the development of tools (ICT based/mobile) to reduce the transactions costs to deliver the insurance product for the private sector (e.g. sales apps, mobile payments, electronic registration etc) Policy and institutional work is critical for creating the necessary enabling conditions for scaling (e.g. regulatory frameworks, policies, etc) This could be effectively achieved with a continuous research effort to respond to implementation needs.
  9. For IBLI we used MODIS NDVI imagery according to the methodology illustrated (spatial aggregation at insurance unit level, taking into account the extensive nature of grazing lands in the region and migration), then aggregated over the growing season(s) (there are two in East Africa) and finally an anomaly is calculated with respect to long term mean (z-score) to assess the current condition.
  10. You can also skip this eventually. It is reiterating that the design of IBLI is done for early response for asset protection. The payouts can serve to purchase feed/fodder, water, veterinary services etc to protect the livestock before mortality occur so the total sum insured (the maximum amount one can get) is equal to the cost of keeping an animal alive during drought. There are two seasons in East Africa, the short rains shor dry (oct to feb) and the long rains long dry (march to sept)
  11. When a pre-defined trigger is reached (so the forage availability falls below a certain level), then payout are linearly dependent on the forage availability index.
  12. Feasibility assessment is the first phase of the IBLI implementation cycle. It is a critical step to evaluate if investments to introduce IBLI are meaningful and to understand the modality of implementation
  13. The EO community could greatly contribute the development of index-insurance or, more broadly speaking, disaster risk financing solutions for the African drylands. And this in turn could have dramatic impacts on poverty reduction and SDGs. However, more efforts should be done to understand the specificity and complexity of rangeland systems in Africa and to design approaches that are tailored to these ecological systems. Can we go beyond NDVI and test new models to improve the assessment of forage resources? We need operational, near-real time and long term datasets and indicators that are tested and validated in the African context (e.g. RAPP PV/NPV/BS calibrated in Africa?) Can we improve our characterizations of rangelands to recognize the heterogeneity of these systems which has dramatic implications on their usability and value for grazing?  Rangeland are still not clearly defined and we do not have a recognized rangeland cover product… Can we explore more the potential of remote sensing for assessing forage quality (beyond quantity) and invest in generating reliable geospatial datasets to better monitor livestock production (e.g. livestock density, water points,etc? Finally, for this to be possible we need to address the huge issue of data scarcity in the pastoral drylands and support efforts to design effective networks of in situ measurements for model calibration/intercomparing/accuracy assessment. Given the cost of data collection in these remote region, new technologies should be tested.