UC Davis Agricultural and Resource Economics

Michael Carter: Satellite-based Livestock Insurance for Kenya

Dec. 5, 2011

Professor Michael Carter and other members of the I4 Index Insurance Innovation Initiative based at UC Davis devised an innovative insurance program in Kenya that aims to prevent livestock farmers from suffering impoverishment during a drought. Instead of waiting for a drought to wipe out an entire community's herd and having to rely entirely on international aid, the program pays insured farmers when they lose a portion of their herds.

The photo shows Kenyan pastoralists playing an insurance education game under the direction of ARE Ph.D. student Sarah Janzen. With an initial group of 2,000 policyholders, Carter and colleagues are in the midst of a long term impact evaluation study designed to see if the insurance can brake the slide of families into chronic poverty. First payouts were made under the program in October 2011.


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