New developments in technology bring areas of insurance that were previously not cost-effective into financial viability.
In an article published on 2 March 2015 in Reactions magazine online, Victoria Beckett reports that ‘[r]ecent technology has allowed satellite imagery to assess weather damage’ and [o]ver the last few years “index-based livestock insurance (IBLI)” has provided insured pastoralists across Africa with a pay-out in times of drought, based on predicted rather than actual livestock deaths.’
These payouts are ‘limiting poverty’ by reducing ‘”distress” sales of livestock to raise cash in times of drought, the likelihood of having to eat significantly smaller meals and dependence on food aid.’
It seems like a good idea for a farmer to insure his livestock. There are other threats like severe weather that can impact them. It’s better to be safe than sorry!