Bundling index-based livestock insurance with animal health services for enhanced resilience of pastoralists in Ethiopia: An assessment of service providers’ capacity and prioritized health services

Pastoralism is the main livelihood in Ethiopia’s drylands, but livestock productivity is threatened by drought, emerging diseases, and limited access to quality animal health services. Index-Based Livestock Insurance (IBLI) protects against widespread drought shocks but does not address individual animal health risks. Routine animal health care reduces disease threats but cannot mitigate severe drought impacts. To address these combined risks, Bundled Index-Based Livestock Insurance (BILI) integrates livestock insurance with animal health services, using last-mile service providers to reduce distribution costs, improve insurance affordability, and strengthen long-term resilience. To assess readiness for BILI, a service provider mapping study was conducted across 22 Kebeles in 13 Woredas within Borana Zone, Oromia region, Ethiopia. The study included personal interviews with 40 service providers and participatory workshops to evaluate local capacity, willingness to participate, distribution channels, networks, and operational modalities. The assessment identified active livestock service providers and Community Animal Health Workers (CAHWs) who are willing to participate in the BILI program, filling gaps left by state veterinary clinics that focus mainly on regulation and mass vaccination. Key operational challenges include transportation, limited working capital, price volatility, and pastoral mobility. Service Providers also reported that diseases such as Contagious Caprine Pleuropneumonia (CCPP), Contagious Bovine Pleuropneumonia (CBPP), internal parasites, and pasteurellosis are prevalent, with oxytetracycline and ivermectin in the highest demand for treatment. The report recommends leveraging private agrovet shops and CAHWs for last-mile delivery, implementing a 40-50% targeted voucher subsidy, prioritizing high-quality veterinary drugs, offering flexible drug selection options, and providing targeted capacity development for service providers on BILI concepts and operational guidelines.