[PASTRES] Livestock insurance in southern Ethiopia: calculating risks, responding to uncertainties

[PASTRES] Insurance is often proposed as a way of offsetting risks and responding to disasters. Index-based livestock insurance (IBLI) has been offered to pastoralists in Borana zone in southern Ethiopia over the past few years. This aims to pay-out before the disaster strikes based on a predictive assessment of the season derived from satellite-based estimates of livestock forage availability. It sounds like a good solution, but does it work and for whom? Livestock insurance has a number of assumptions embedded in the design. These include that the coming season can be reliably predicted; that the effects play out uniformly over an area; that the drought strikes as a single event and that livestock are held individually and responses are individualised.