Managing Agricultural Risk at the Country Level : The Case of Index-Based Livestock Insurance in Mongolia

Mahul, Olivier ; Skees, Jerry

World Bank, Washington, DC

关键词: ACCIDENT;    ACCOUNTING;    ADMINISTRATIVE COSTS;    AGENTS;    AGRICULTURAL INSURANCE;   

DOI  :  10.1596/1813-9450-4325
RP-ID  :  WPS4325

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper describes the index-basedlivestock insurance program in Mongolia designed in thecontext of a World Bank lending operation with Government ofMongolia and implemented on a pilot basis in 2005.Thisprogram involves a combination of self-insurance by herders,market-based insurance, and social insurance. Herders retainsmall losses, larger losses are transferred to the privateinsurance industry, and extreme or catastrophic losses aretransferred to the government using a public safety netprogram.A syndicate pooling arrangement protectsparticipating insurance companies against excessive insuredlosses, with excess of loss reinsurance provided by thegovernment.The fiscal exposure of Government of Mongoliatoward the most extreme losses is protected with acontingent credit facility.The insurance program relies ona mortality rate index by species in each local region.Theindex provides strong incentives to individual herders tocontinue to manage their herds so as to minimize the impactsof major livestock mortality events; individual herdersreceive an insurance payout based on the local mortality,irrespective of their individual losses.This projectoffered the first opportunity to design and implement anagriculture insurance program using a country-wideagricultural risk management approach.During the firstsales season, 7 percent of the herders in the three pilotregions purchased the insurance product.