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Competing Expectations in an Index-Based Livestock Insurance Project

Author

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  • Leigh Johnson
  • Brenda Wandera
  • Nathan Jensen
  • Rupsha Banerjee

Abstract

Despite donor enthusiasm for index-based microinsurance, globally, pilots have struggled to realise its promises. This paper considers the Kenyan Index-Based Livestock Insurance pilot, investigating the competing expectations held by actors including (re)insurers, researchers, donors, NGOs, and pastoralists. We explore expectations’ impacts on partner involvement, project outcomes, sales, and the future outlook for Kenyan livestock insurance. Quantitative analysis suggests early demand and subsequent backlash were not results of systematic mis-selling, but rather stemmed from clients’ unfulfilled expectations of patron-like relationships with insurance partners. We caution against exaggerated expectations of profitability and call for reflection and transparency amidst the embrace of insurance tools.

Suggested Citation

  • Leigh Johnson & Brenda Wandera & Nathan Jensen & Rupsha Banerjee, 2019. "Competing Expectations in an Index-Based Livestock Insurance Project," Journal of Development Studies, Taylor & Francis Journals, vol. 55(6), pages 1221-1239, June.
  • Handle: RePEc:taf:jdevst:v:55:y:2019:i:6:p:1221-1239
    DOI: 10.1080/00220388.2018.1453603
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    Cited by:

    1. Aheeyar, Mohamed & de Silva, Sanjiv & Senaratna Sellamuttu, Sonali & Arulingam, Indika, 2019. "Unpacking barriers to socially inclusive weather index insurance: towards a framework for inclusion," Papers published in Journals (Open Access), International Water Management Institute, pages 11(11):1-19.
    2. Abdullah Al-Maruf & Sumyia Akter Mira & Tasnim Nazira Rida & Md Saifur Rahman & Pradip Kumar Sarker & J. Craig Jenkins, 2021. "Piloting a Weather-Index-Based Crop Insurance System in Bangladesh: Understanding the Challenges of Financial Instruments for Tackling Climate Risks," Sustainability, MDPI, vol. 13(15), pages 1-18, August.
    3. Leigh Johnson & Tahira Shariff Mohamed & Ian Scoones & Masresha Taye, 2023. "Uncertainty in the drylands: Rethinking in/formal insurance from pastoral East Africa," Environment and Planning A, , vol. 55(8), pages 1928-1950, November.

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