Tag Archives: Ethiopia

How has a holistic risk management solution helped Ethiopian farmers face climate events?

Ethiopia is a country prone to many climate risks, which particularly affect its majority rural population. To manage these agriculture-related climate risks, Ethiopian farmers respond by spending their savings, selling valuable assets at heavy discounts, and reducing consumption.

Until recently, insurers barely had any footprint in rural areas with smallholder farmers. In fact, 2014 data shows that less than 2% of Ethiopians were covered by any type of formal microinsurance product. Because insurance is an ex-post tool and not all risks are insurable, a holistic approach to dealing with climate risks is needed to help vulnerable communities become more resilient.

In this article, Milliman’s Mariah Mateo Sarpong and Mebrahtu Brhan Gebre present an example of a holistic risk management solution that the MicroInsurance Centre at Milliman developed for smallholder farmers in northern Ethiopia. The product illustrates Milliman’s Climate Resilience Initiative’s holistic approach to enhancing climate resilience in low-income communities.

Investigating inclusive insurance demand in Ethiopia

One important barrier to insurance markets that are more inclusive is the necessity to better understand the needs of low-income and other unserved and underserved populations. This study provides data and information regarding critical inputs to key microinsurance product development opportunities and requirements in Ethiopia. By examining the risks that low-income people face, how they manage them, and identifying gaps, the market can gain valuable inputs into product design, including benefits to offer, better distribution approaches, and marketing and communications strategies.

The authors of the study are MicroInsurance Centre’s Katie Biese and Michael J. McCord, World Bank Group’s Craig Thorburn, EA Consultants’ Katherine Baez (EA Consultants), and Eamon Kelly.