Index-Based Mortality Livestock Insurance in Mongolia

A case study on the Index-Based Livestock Insurance (IBLI) Project in Mongolia, which provides financial security to herders against mass livestock losses caused by extreme weather and climate change.

• Extreme weather exacerbated by climate change creates significant vulnerability for Mongolia's economy and workforce, as herders make up approximately 33% of the country's workforce. In 2010, more than 50% of herders were impacted by extreme weather, and 75,000 herders lost over half of their livestock.
• The Government of Mongolia, with World Bank support, implemented the Index-Based Livestock Insurance (IBLI) Project across all provinces. Unlike traditional insurance, this system triggers payouts based on aggregated criteria, such as livestock losses across a specific geographic area, rather than individual losses. In 2012, herders purchased 16,000 policies.
• The IBLI is part of a broader risk management strategy by the Government of Mongolia that includes encouraging herders to align the number and types of animals with the carrying capacity of pasturelands. For such index-based programs to succeed, they require high-quality data, affordability for both buyers and sellers, and clear communication regarding logistics and benefits.

APA

Climate and Development Knowledge Network (2013). Index-Based Mortality Livestock Insurance in Mongolia. https://cdkn.org/resource/index-based-mortality-livestock-insurance-in-mongolia

Chicago

Climate and Development Knowledge Network. Index-Based Mortality Livestock Insurance in Mongolia. 2013. https://cdkn.org/resource/index-based-mortality-livestock-insurance-in-mongolia.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Index-Based Mortality Livestock Insurance in Mongolia |date=28 March 2013 |url=https://cdkn.org/resource/index-based-mortality-livestock-insurance-in-mongolia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetwork2013indexbased, author = {{Climate and Development Knowledge Network}}, title = {{Index-Based Mortality Livestock Insurance in Mongolia}}, institution = {Climate and Development Knowledge Network}, year = {2013}, month = mar, url = {https://cdkn.org/resource/index-based-mortality-livestock-insurance-in-mongolia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }