Developing an insurance scheme to mitigate the impacts caused by wildlife

Human-wildlife conflict often imposes economic and human costs on humans worldwide, often in some of the poorest areas. Financial mechanisms to mitigate the costs of human-wildlife conflict have primarily focused on compensation schemes to date, but these have achieved mixed results. In 2018, researchers at the International Institute for Environment and Development (IIED) felt that the role of insurance schemes had not been investigated enough and thought private insurance might address some of the pitfalls of compensation schemes if developed correctly. While several NGOs had developed a few insurance schemes, few had been led by a commercial, private sector insurance company.

Elephants in Africa (Loxodonta africana) and Asia (Elephas maximus) can cause considerable impacts on the people living alongside them. In Kenya, between 2015 and early 2017, over 3000 cases of human-elephant conflict were reported. This led to the start of the Livelihoods Insurance from Elephants (LIFE) project by the IIED with funding provided by the UK government’s Darwin Initiative. In Kenya and Sri Lanka, IIED’s efforts had started to explore the potential for insurance in mitigating these impacts. This case study will highlight the activities conducted in Kenya, but similar approaches were taken in Sri Lanka.