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Participatory Research on the effectiveness of Index Based Livestock Insurance as a Pro-poor Climate Risk Management Strategy in Borena zone

Subject/Objective: 
The general objective of this study was to assess the effectiveness and contribution of IBLI as climate risk in protecting the livelihood of the pastoralist households against climate risk and identify factors affecting demand for IBLI to draw key lessons learnt from the pilot IBLI project to develop strategic recommendations and for designing sustainable IBLI project initiatives.
Methodology: 
Method of data analysis Household data was analyzed using descriptive statistics and econometric models. We applied inferential statistics (t-test) of the differences in the demographic characteristics and socio-economic variable between beneficiary and non-beneficiary pastoralists. The econometric model is based on two step approach. First, we estimated the determinants of uptake of IBLI using the linear probability model. Second, we estimated the impact of IBLI intervention on policyholder using Ordinary Least Square regression. For this purpose, predicted uptake of IBLI from step one was used as covariate in step two to examine impact on policyholder.
Key findings: 
Annual growth rate average was about 52% for the period. This shows that overtime the pastoralists had become more acquainted with the importance of the IBLI and hence demanded more insurance product. Moreover, the number of insured livestock increased exponentially from 1,876 to 14,017 during the period. In percentage this is about 647% compared to the base year. The annual growth rate of number of livestock insured was about 75%. Therefore, uptake of IBLI has shown an exponential growth. This conforms to the information acquired during FGD with selected pastoralists. They explained that even after the subsidy is terminated demand for the insurance is rising significantly. Our FGD participants predicted that IBLI demand continues to rise in the coming years.
Assessment Report: 
Publicly Available
Assessment Questionnaire: 
Publicly Available
Assessment Data: 
Publicly Available
Webspace(s): 
Assessment Date(s): 
30 Mar 2018
Status: 
Report completed
Population Type(s): 
Host communities
Leading/Coordinating Organization(s): 
Overseas development and relief agency of the Catholic Church, SCIAF and Trocaire
Location(s): 
Moyale
Miyo