estock Takaful

Potential Distribution Channels

IBLI Policy Workshop: Developing Policy Innovations for

the Pastoralist Rangelands through Cross-Sector

Partnerships

By Hassan Bashir

Tuesday, June 9, 2015

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TIA’s Broad Objectives

1. To protect pastoralist in Arid regions from extreme suffering & loss livestock as a result of drought.

2. To educate, create awareness of livestock insurance within the targeted counties through practical engagement & awareness campaigns.

3. To upscale IBLT uptake in targeted counties.

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ASAL Region

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Major Challenges

a) Reliability of Data (Product)b) Reachability (Presence)c) Acceptability (Community)d) Affordability (Price)e) Difficulty of Achieving Critical Mass (Volume)f) Inclusive Nature of Claims Triggerg) Need for Geographic Diversity

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TIA IBLT Experience Map

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TIA Distribution Channel

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Lead Agent Network

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IBLT Sales Experience (Wajir)

W1 W2 W3 W4 -

750,000

1,500,000

2,250,000

3,000,000

Series1

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IBLT Sales Experience Combined

Wajir Isiolo Garissa Mandera -

750,000

1,500,000

2,250,000

3,000,000

W1 W2 W3

W4

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Payout (Claims) Experience

W1 W2 W3 W4 -

1,250,000

2,500,000

3,750,000

5,000,000

Sales Claims

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Total Payout Against Premium

Sales Claims -

1,750,000

3,500,000

5,250,000

7,000,000

Series1

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Summary of IBLT Experience

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Summary of IBLT Experience

Total Number of Policies 2,395

Number of Shoats Insured 31,323

Number of Cattle Insured 1,355

Number of Camel Insured 2,929

Total Number of Livestock Insured 35,607

Sum Insured 98.3 million

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Key Stakeholders

LivestockAsset

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key Local Stakeholders

1. Community Elders/Opinion Leaders2. Religious Leaders3. County and Local Chiefs4. Members of County Assembly5. Members of Parliament6. County Livestock Department7. Sub-County/Ward Administrators8. Livestock Extension Officers9. Local Community Media Houses

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Key Questions1. How do we improve the reliability of the base data, so that triggers

reflect reality on the ground?

2. How do we tell the potential impact of climatic changes from window to window? on sum insured? on price?

3. How do we deal with concentration of risk?

4. How do we deal with the need to geographically diversify & the cost of doing so?

5. How do reconcile the need for internal capacity & the limited initial revenue base?

6. How do we scale up to reach large numbers across the ASAL regions?

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Key Questions (cont)7. How do we take pain out of reaching the community?

8. How can we make the product affordable for the community, yet commercially viable for the insurer?

9. How do we sustain operations in the field long enough to achieve critical mass?

10. How do we win the patience of Boards & Shareholders if we have to crawl towards long term commercial viability?

11. How can we create the supporting industry sustainably?

12. How do we create community of acceptance/ownership for long term sustainability?

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Thank You