IBLI: OIC’S EXPERIENCE

The Story of Huka BiduHuka Bidu is a man in his early 40s. He is a father of two and lives in Malble Yabello. Pastoralism- rearing animal the livelihood of his family. Whenever the rain is good and the pasture is available, he says that they lead a good life. They can sell their animal at a pretty good price and they are also guaranteed of milk and meat. He recalls some of the arid years- the bad times: Two times he lost his herds and forced into abject poverty. He was depending on aid to survive. The local NGOs visited him and sweet-talked him to consider changing his livelihood. He gave them an outright rejection. Surviving the droughts, he again started from the scratch and managed to get back to normal life. Up on the launching of the IBLI in Borena, he started purchasing the policy as he know that traditional coping mechanisms did not save the lives of his livestock twice. Lucky enough, he got entitled to the first claims payment in 2014. Speaking of that, he said, I was tired of starting from scratch, but now, I have proved that there is a better way of mitigating the damage that comes from the catastrophic risk. I will keep on having the policy.

OIC’s Experience Since the launch of IBLI in 2012:

Above 3,150.00 polices were sold; 7,985 livestock were insured; Premium of Birr 1,015,147 Pay out – made thrice to roughly 700

policyholders Transition from ARC to APC

Supposed to be game changer

Challenges Low awareness of insurance - pastoralists; Infrastructure

inaccessible areas; Costly Premium Collection and Claims

Payment Conflict among pastoralists; Migration of pastoralists from place to

place in search of resources; Liquidity problem; Arrangement of Reinsurance;

Stakeholders' Views Upstream commitment & loose

cooperation at lower level– public sector;

Increasing interest of partners;

Impact

Demonstrable benefit to the pastoralists;

Active involvement of stakeholders– could change the game;

Thank You