Satellite insurance for cows

2010-01-22 09:57

kalahari.com

Oslo - Herders of cows or camels in arid northern Kenya can obtain a new type of insurance against drought from Friday, the first of its kind in Africa using satellites to gauge rainfall.

Project organisers hope to get about 1 000 households in the Marsabit district to sign up for insurance in coming weeks after a formal launch on Friday by microfinance group Equity Bank and African insurance provider UAP Insurance Ltd.

"If it's successful we will look further afield, in western Africa around the Sahel and southern Asia," project leader Andrew Mude of the International Livestock Research Institute (ILRI) told Reuters.

Under the pilot project, pastoralists in Marsabit will be able to insure herds - of cows, goats, sheep or camels - against starvation during drought. Drought and lack of pasture are the main causes of livestock death in the arid region.

Pastoralists would get automatic payments for losses if satellite images of the region show vegetation fades from green - shades of brown will gauge the severity of drought.

The use of satellites bypasses the traditional, more costly system under which insurers check reported livestock deaths before making payouts. That is almost impossible to judge in herds that wander over huge areas.

Still, risks include that some herders suffer bigger than predicted losses during droughts. In other cases, some herders might get payments when their animals have all survived.

Northern Kenya has suffered 28 major droughts in the past century, with four of them in the past decade.

Mude said it was too early to say if the number of droughts was increasing, perhaps because of climate change stoked by human emissions of greenhouse gases.

Under the scheme, a family in Lower Marsabit would have to pay $50 a year to insure a herd of 10 cows worth a total $1 580.

The insurance pays nothing for herd losses up to 15%. So if drought strikes and is estimated as severe enough to kill 25% of all livestock, the family gets a payout of $158, covering 10% of the value of the herd.

In Mongolia, a different form of insurance brings payouts for all pastoralists if severe snowstorms kill animals in benchmark herds. But such data risks manipulation, ILRI said.

Herders signing up for the Kenyan insurance might also be more able to get other forms of credits - banks would be more willing to lend to those with more predictable incomes.

Read more on:    equity bank  |  kenya  |  east africa
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

 

Inside News24

 
/News

Jobs in Cape Town [change area]

Jobs in Western Cape region

Financial Manager - GROW YOUR SKILLS

Cape Town CBD
Hi-Tech Recruitment - Johannesburg
R40 000 - R45 000 Per Month

Payroll Administrator

Cape Town
O'Brien Recruitment
R23 000 - R25 000 Per Month

Customs Clerk

Cape Town Southern Suburbs
Tower Group (PTY) Ltd
R10 000 Per Month

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Mind power dominates and can help you to uncover things from a deeper level, but it can also create entanglements if you let your...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.