Microfinance Focus, August 24, 2011: According to the latest emerging insights from the ILO Microinsurance Innovation Facility, openly communicating problems and seeking communities’ assistance can help build trust during times of crisis.

Sharing their experience with the International Livestock Research Institute (ILRI), Kenya, microinsurance practitioners from ILO highlight that when community leaders of Index Based Livestock Insurance (IBLI) product were explained about a missed sales period, they not just accepted the explanation but appreciated the effort made by the partners, and promised to support the effort during the next sales period.

ILRI and partners have developed a research program that produces market-mediated index-based insurance products targeted at livestock keepers, particularly those in arid and semi arid lands. The two-year project, which began in December 2009, seeks to support three specific activities of the IBLI product and process: marketing and communication, training and extension, and insurance operations and delivery channels.

During the first round of sales, ILRI and its distribution partner Equity Bank realised that distribution costs related to selling IBLI to pastoralists in Kenya's remote Marsabit District had exceeded the estimates. These additional costs prevented the partners from implementing the next round of sales, and despite best efforts, this opportunity was skipped.

ILRI and Equity along with their risk carrier, UAP Insurance Company, visited the community to explain the reasons behind the missed sales period.