iblip mongolia
Download
Skip this Video
Download Presentation
IBLIP, Mongolia

Loading in 2 Seconds...

play fullscreen
1 / 24

IBLIP, Mongolia - PowerPoint PPT Presentation


  • 169 Views
  • Uploaded on

IBLIP, Mongolia. INDEX-BASED LIVESTOCK INSURANCE PROJECT IN MONGOLIA. 1. Why Government of Mongolia wants to implement this pilot project?. Article 5.5 of the Constitution states: “ livestock is a national wealth and must be protected by the Government”. 1. Importance of the project.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' IBLIP, Mongolia' - ova


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
iblip mongolia

IBLIP, Mongolia

INDEX-BASED LIVESTOCK INSURANCE

PROJECT IN MONGOLIA

1 importance of the project
Article 5.5 of the Constitution states:

“ livestock is a national wealth and must be protected by the Government”

1. Importance of the project
1 importance of the project1
Agricultural sector – 20% of national GDP in the Mongolian economy.

Livestock sector - 87% of agricultural GDP.

Livestock husbandry supports ½ of the population, particularly in rural areas.

1. Importance of the project
1 importance of the project2
However, extreme climatic events cause high rates of livestock mortality, jeopardizing rural livelihoods:

Example: 1999 to 2002

frequent droughts and severe winters/springs (known as dzuds) caused loss of 1/3 of the national herd,

81,000 households lost ½ of their livestock,

12,100 households lost all livestock

GDP growth drop to 1.1%

1. Importance of the project
1 importance of the project3
Mandatory livestock insurance before 1990

Voluntary livestock insurance since 1990

1990 - livestock privatized

1. Importance of the project
background situation with livestock insurance
Very little livestock insurance is being sold today in Mongolia.

Livestock risks are considered to be uninsurable due to very large risk.

Herders are dissatisfied of past failures in paying indemnities/low animal values on insurance.

Lack of local branches to offer insurance in the country side/ poor contracts.

BACKGROUND:Situation with Livestock Insurance
background needs for new livestock insurance
BACKGROUND: Needs for New Livestock Insurance
  • Since 1995 three attempts of the Government to create and implement mandatory livestock insurance have failed due to lack of feasibility and expected high administrative cost and high exposure to major cost during the event.
  • The index-based livestock insurance (IBLI)
    • is linked to the direct outcome from dzud – high livestock mortality
    • provides incentives to continue to manage herds by herders
    • low administrative cost for ICs
    • secure indemnity payments to insured
    • pays out whenever the mortality rate in the local region (soum) exceeds a specific threshold.
project s development goal
This would be achieved through:

Developing and piloting IBLI program in three provinces of Mongolia; and

Building institutional capacity and legal framework for the prospective replication and scale-up of IBLI nationwide.

The IBLIP is to be implemented by the Government of Mongolia with financial assistance from IDA, World Bank, Japanese Government and FIRST Initiative from September 2005 to June 2010.

Project’s Development Goal
  • The development objective of the IBLI project would be to ascertain the viability of index-based livestock insurance in Mongolia.
pilot aimags
Pilot Aimags
  • Implementation is on going in 3 provinces: Bayankhongor, Khentii and Uvs.
  • Provinces were chosen considering geographical dispersion (different types of climate and terrain), agro-climatic variation and relative risk (low correlation of livestock losses).
layers of the risk
Layers of the Risk

100% Mortality

30% Mortality

6% Mortality

Disaster Response

Product

Base Insurance Product

Retained by

Herders

ibli sales
IBLI Sales

2008 Sales Result

Total insured herders: 4047

Bayankhongor aimag:1910 herders (16%)

Uvs aimag:1388 herders (13%)

Khentii aimag:749 herders (10%)

Total livestock insured: 489800heads (6%)

2006 Sales Result

Total insured herders: 2412

Bayankhongor aimag:949 herders (8.3%)

Uvs aimag:1184 herders (12%)

Khentii aimag:279 herders (4.2%)

Total livestock insured: 292000 heads (5.5%)

2007 Sales Result

Total insured herders: 3705

Bayankhongor aimag:1708 herders (14.7%)

Uvs aimag:1431 herders (14.2%)

Khentii aimag:566 herders (7.9%)

Total livestock insured: 409000heads (5.8%)

ibli sales1
IBLI Sales

2008 Sales Result

4 Insurance companies

183 Insurance agents

Total premium collected: 140.1 million MNT

2007 Sales Result

4 Insurance companies

154 Insurance agents

Total premium collected: 129.1 million MNT

2006 Sales Result

3 Insurance companies

144 Insurance agents

Total premium collected: 85.5 million MNT

indemnity payments
Indemnity payments

2006 Sales Result

Total insured herders: 2412

Total indemnity payment received herders: 47

Total premiums collected: 85.5 million

Total indemnity payments: 1.8 million

Insurance coverage: all 56 soums of 3 pilot aimags

Indemnity coverage: 2 soums of 2 aimags

2007 Sales Result

Total insured herders: 3705

Total indemnity payment received herders: 1742

Total premiums collected: 129.1 million

Total indemnity payments: 380 million

Insurance coverage: all 56 soums of 3 pilot aimags

Indemnity coverage: 35 soums of 3 aimags

financial linkages current achievements
“Mongol Post Bank”

Extendable loan amount

Financial Linkages: Current achievements

“XAC Bank”

  • 0.1% discount on loan monthly interest
  • Up to 14 months loan
      • “Khan Bank” (Agricultural Bank of Mongolia)
  • 0.1% discount on loan monthly interest
  • Extendable loan amount
slide21
3. Challenges
  • Data
  • Insurance companies
1 data
Accurate, affordable, and timely methods for estimating livestock losses

Accuracy

National statistics office responsible for official statistics data

Full time census twice a year? New method like sample survey?

1. Data
2 insurance companies
Profitable?

Reinsurance

Delivery systems

2. Insurance companies
thank you for your attention

Thank you for your attention!

For more information please visit our website at

www.iblip.mn

Project Implementation Unit

Ulaanbaatar, Mongolia

Tel: 976-70112005

E-mail: [email protected]

ad