Status of Index-insurance in the IGAD region Francesco Fava INDEX-INSURANCE FOR LIVESTOCK IN THE IGAD REGION MINISTERIAL POLICY ROUNDTABLE & TECHNICAL WORKSHOP ILRI Campus, Addis Ababa, 24-26 June 2019

Africa Classification for Index-insurance for livestock “Relevance Zones” (Mills et al., 2017 ILRI Brief)

Current coverage, East Africa Scaling IBLI – Ongoing work

TOWARD SUSTAINABLE SCALING - Idea conceptualization: problem statement and conceptual framework design based on direct experiences, literature review and interactions with index-insurance actors. 3-6m Feasibility assessment (country level): agro-ecological context, product technical design suitabiliy, rural development and macroeconomic context, natural hazard vulnerability, potential demand for insurance, weather/satellite/agricultural data infrastructure, private insurance infrastructure, distribution channels, institutional context and capacity, existing policies, legal & regulatory environment, stakeholders/partners interest and capacity, ongoing related projects and initiatives, potential for financial support. 6m-1y Preparation (sub-country level): pilot area(s) identification, initial product design, risk modelling and pricing, product design tools (i.e. pricing, claim settlments, etc) development, public/private stakeholders/partners engagement at local and national level, capacity needs assessment, cap. dev. material development, detailed market study, implementation model design (i.e. distribution mechanism), implementation tools development (e.g. sales platform), legal/regulatory product approval process, design of M&E framework and baseline, funding mechanism and source identification. 3-5yrs Implementation: testing and implementation of all components of the insurance program. Refinement of product design in response to stakeholders feedback and validation studies, generate evidences of impact, support informed demand, support policy and regulatory infrastructure, develop cost-effective delivery channels, refine business and implementation models, multi-level capacity building. Support Actions for Sustainable scaling: target actions and interventions to support enabling conditions for program scaling and long-term sustainability. Eritrea S.Sudan Djibouti Uganda - karamoja Somalia Ethiopia Kenya Fava et al., (2018)

Somalia -Extent of rangelands Extensive rangelands dominate in Somalia, particularly in the northern and central regions Mixed/cropland systems found in the southern regions of Juba, Shabelle and Bay Mixed systems not fully suitable for IBLI implementation

Somalia- Forage availability Based on the NDVI signal NDVI signal is sufficiently clear and strong for the majority of Somalia Low NDVI signal in a significant portion of the northern regions (Sanaag, Bari, and Woqooyi Galbeed), dominated by barren lands

Somalia - Seasonality Bimodal rainfall and vegetation growth patterns are generally observed Seasons are clearly defined: Long rains – approx. March to June Short rains – approx. October to December Unimodal/unclear seasonality – observed in limited areas in the northern coastal regions

Technical Suitability - summary Combines the 3 premises required for successful IBLI implementation About ~70% percent of Somalia has the agroecological characteristics suitable for IBLI implementation ~6% require a more in-depth analysis to assess if an accurate index could be designed based on rangeland dominance and forage availability (NDVI signal validity) ~24% of the UAIs (districts) were unsuitable for IBLI (red regions) Open question: migration patterns and cross- borders transhumance.

THANK YOU

Work with countries What is the objective and scope for index-insurance? What type of scheme (micro, meso, macro)? What is the potential role of the public and private sectors? What are the key needs to move to the next stage?  Road map toward implementation

Today Tomorrow We form 7 groups (1 per country – contact person) Evening: country teams discuss and begin drafting ideas (on ppt) Continuation of the discussion (breakout session) with experts and finalization Presentations Tomorrow