Index Based Livestock Insurance: Oromiya Insurance Company’s related products

Mitiku Abdissa

Workshop on Developing Index-Based Livestock Insurance to Reduce Vulnerability due to

Drought-related Livestock Deaths ILRI, Addis Ababa, Ethiopia

12 July 2010

Oromia Insurance Company (S.C)

Establishment ------- 26 January 2009.

Vision

To be a leading insurer

MissionBuilding long-term beneficial relationship with its

stakeholders and other business partnersEmploying, developing and retaining highly

motivated professional team of employees that add value to the company and its customers

Building profitability and financial strength suitable to be a lead insurer

Practicing fair business ethics and values

Core Values

Respect the public in general and the customer in particular

Believe in all dealings to be friendly and courteous, as well as fair and compassionate

A sense of urgency on any matters related to customers.

Customer-drivenBelieve in change and dynamism.Peruse proactive attitudeWe are against corruption, conflict of interest and

any forbidden conductCarry out duties and responsibilities in

transparent and accountable ways

CapitalAuthorized Capital Birr---------- 200 million

Subscribed capital Birr -----------85 million

Paid up capital Birr ---------------30 million

Number of Shareholders ----------540

Co-operative Unions who are Share holder founders of OIC

Unions : 34Primary Coop. : 1,665Members

Male : 1,170,696 Female : 97,850

Total : 1,268.546

Share of unions‘ in oromia insurance

Subscriber share : Birr 14.4million Paid up Share : Birr 3.637million

Unions share of paid-up capital can establish an independent General Insurance Company

Activities made so far

Union Forum in Adama, Jimma July 2009 – Seminars - Ambo, Woliso, Selalle Meki-

BatuSponsorships - Adama, Federation MetingUnions Day at Adama -Convincing community leaders and

government officials around the area.Preparing distribution channels and

intermediaries/partners around the project area.

Stakeholders engagement

Branch Locations

OIC Ambo - Ambo Farmers Cooperation Union

OIC, Adama - East ShoaWoliso - South, Western Shashemene – SouthernHawassa - Pastoralist

Communication with PartnersElders and Community Leaders in Gujii and BorenaDairy Farmers – Adaa and SelaleGovernment BodiesNon-Shareholder Unions engaged in LivestockNGO’s in Yabello Area Survey to update channels in Borena and Guji

ZoneLivestock Marketers Banks - Cooperative Bank of Oromia in Bulle Hora

and Oromia International Bank Yabello Branches- Banc assurance.

Communication ContinueCooperative Promotion BureauOromia Pastoralists Area Development

Commission

Stakeholders engagement

The area of our work that related to IBLIWe are on the process of insuring livestock

and crops e.g Adea and Salele.

We have a network with pastoralist and related partners and made a week assessment around the Borena and Gujji Zone.

We have convinced community leaders and government organization about the livestock insurance

Area of work - ContinuationWe have selected the best distribution

channels and intermediaries.

Our banks around Borena and Guji are the only banks closely working with pastoralists

Our company is partly owned by Government, so every gov’t structure will work with us with no cost and language barriers.

Index Based Livestock Insurance may interact with our project in the following ways:

Experience sharingIndex facilitatingProviding materials and information for IBLI

7. ChallengesConvincing pastoralist

Sustainability of the project

Ownership of the project for long-period of time

InfrastructureCommunicationCulture

Thank you!