Towards bundled index-based livestock insurance for enhanced climate resilience: A report of a multistakeholder ideation workshop

The workshop explored the potential for Bundled Index-Based Livestock Insurance (BILI) as an integrated risk-management solution for pastoralists facing interconnected risks such as drought, livestock disease, feed shortages, market volatility and limited access to services. While IBLI provides important protection against drought-related livestock losses, participants emphasized the need to complement insurance with services that provide more immediate and visible benefits to pastoral households. Among the options considered, combining IBLI with a prepaid/capitated livestock-health package emerged as the most feasible immediate pathway, while integration of animal feed could be considered in a later phase as markets and delivery systems develop. The workshop emphasized that successful bundling would require more than combining different services under one product. Pricing, demand, service delivery, data systems, provider incentives, communication and trust will all be critical. Participants recommended baseline demand and willingness-to-pay studies to inform pricing and subsidy decisions, as well as stronger livestock disease and market information systems to support product design. Continuous and transparent communication was also identified as essential, particularly given previous challenges around understanding IBLI indices, payouts, and product benefits.