Consultant-SHORT TERM TECHNICAL ASSISTANCE TO BOOST PROVISION OF TAILORED INSURANCE PRODUCTS

Overview of CSJ Programme
Climate Smart Jobs (CSJ) is a 4-year programme funded by the UK's International Climate Fund. It consists of 3 major components, 1A being Market Systems Development, 1B-Climate Innovation funds and 1C-Ecosystems Services. The market systems development component of the programme aims to sustainably increase agricultural productivity levels and ultimately the incomes of smallholder farmers (particularly women, refugees, and host communities). CSJ understands that smallholder farmers are extremely vulnerable to the effects of climate change (particularly extreme weather events) and face numerous constraints, mitigating these effects is central to the program’s approach.

The CSJ's technical proposal and recent assessments identified several challenges that farmers face such as unpredictable and spatial distribution of rainfall, prolonged dry spells, high level of pests and disease infestations, floods, hailstorms etc. all of which are caused by the change in climate. To help smallholder farmers have greater access to reasonably priced, high-quality goods and services, CSJ will work with market players to strengthen the system through 9 work packages or streams: Soil restoration and Management, Climate Smart Inputs and Services, Post Harvest Handling and Aggregation at Small Holder Farmer Level, Linking Small Holder Farmers to Local, Regional and International Markets, Scaling Commercial Agent Model, Increasing Women’s Productivity and Performance through access to targeted products, services and business opportunities, Strengthening Agricultural Market Performance by Addressing Unequal Gender Norms, Innovations for refugees and refugee hosting communities, innovations for media. This ToR focuses specifically on work package 2, innovation 1, intervention 1 that looks at boosting Small Holder resilience by promoting Tailored insurance Products.

Background to the assignment
Agriculture is backbone of Uganda, contributing 24.1% to the GDP, 33% export earnings and 70% employment base[1]. The report recognises the fact that the sector has greatly been affected by the increasing the unpredictable weather pattern such as delayed on-set of rain, floods, hailstorms, windstorms, drought etc. As a risk management measure, the Government of Uganda established an Agriculture Insurance Scheme where it subsidises farmers accessing agriculture insurance. This is done through a public-private partnership with some insurers aimed at mitigating financial losses suffered by farmers because of damage and destruction of their crops and livestock. The scheme covers risks such as fire, drought, excessive rainfall, windstorm, hailstorm among others. New Vision bulletin of September 4th, 2023 pointed out that despite the potential benefits of Agricultural Insurance[2], the current penetration of Agricultural Insurance remains low in Uganda, covering less than 1% of the farming population.

Key contributors to this low uptake as per the article and also from CSJ’s own assessments are a lack of awareness by the farmers and other players such agricultural officers and agroinput dealers, pricing the insurance products in a way that is not affordable for smallholder farmers, improper handling of claims in efficient and fair way especially in remote rural areas, heavy subsidy by other players such as non-governmental organisations that distort the natural uptake by the farmers, as well as a limited understanding of the benefits by the farmers.

CSJ’s recent assessment and discussion with the Agro Insurance Consortium registered these challenges and seeks to dig deep and explore ways to close these gaps and increase uptake of crop insurance.

[1] Insurance Industry Market Report 22.
[2] https://www.newvision.co.ug/category/agriculture/why-agricultural-insurance-uptake-in-uganda-i-NV_169286 

Objective of the assignment
The objective of this assignment is to understand the current constraints including prevailing models being used by the different insurance companies, explore additional limitations, and determine whether there are opportunities for CSJ to develop a new business model for insurance for SHFs, including women, refugees and hosts.

Scope of work
To understand the constraints to the current insurance models being used to reach SHFs, including women and refugees, as well as the limitations to uptake, CSJ will contract a consultant that can undertake an analysis of the following:
Undertake a desktop review of existing studies that have been done on the types of insurance products being offered to smallholder farmers with a focus on geographies, as well as on CJS target groups, and understand the constraints for a lack of adoption of insurance for these target groups.
Develop a root cause analysis and identify the binding constraints on why SHFs are not adopting insurance, focusing also on women, refugees and hosts. This may include an analysis of the following:
Premium calculations and smallholder farmer affordability, and the cost-benefit analysis.
Claim settlement procedures and level of satisfaction of smallholder farmers who have had claims.
Ease of access to insurance service points especially for those in rural communities and refugee settlements
Level of awareness about insurance products and services points closer to small holder farmers.
Determine whether there is a business case for insurance especially for SHFs, refugees, women, and hosts.
Determine the conditions that must be present for insurance companies to successfully sell agricultural insurance policies and conditions under which smallholder farmers will adopt agricultural insurance , including considerations for women, refugees and hosts , and any variations across the different sub regions in NU.
Identify the entry points for CSJ to intervene on improving the uptake of insurance for CSJ target groups.
Note: We envision this TOR will focus on interviewing key stakeholders in the ag-insurance , smallholder farmers who have taken up insurance policies and those who have not.

Deliverables
A draft report, no longer than 20 pages. Annexes can be in addition to this page count.
A PowerPoint presentation summarising the draft report.
A final report, no longer than 20 pages. Final PowerPoint presentation.

Expertise and experience
A minimum of 8 years' experience in agricultural insurance or related fields, with a demonstrated focus on smallholder farmers.
Comprehensive knowledge of the insurance sector within the targeted geographical regions, including an acute understanding of smallholder farmers' specific needs and challenges, as well as insights into barriers that affect smallholder farmers' uptake of insurance services, including socioeconomic, cultural, and logistical factors.
Proven experience in conducting comprehensive desk reviews and root cause analyses within the agricultural sector, specifically focusing on insurance adoption challenges
Strong analytical skills to interpret complex data and identify trends.
Familiarity with insurance mechanisms and risk management strategies in the agricultural insurance context.
Proven ability to conduct root cause analysis and propose practical solutions to overcome barriers hindering agricultural insurance uptake.
Advanced skills in quantitative and qualitative analysis, with a history of performing cost-benefit analyses of products and services.
An academic background with at least a master’s degree in a relevant field such as Economics, Finance, Business Administration, or Agricultural Sciences.
Strong professional network within the insurance industry and related agricultural and rural development sectors.

Level of effort
We expect the level of effort for this TOR to be approximately 15 days of time for a Senior Expert. However, this LOE could be distributed amongst different levels of experience, approximating the value of the 15 days of senior level expertise

Submission instructions
Submit a technical proposal that is no longer than 2 pages and includes an overview of the consultant/organisation’s experience related to the TOR, and the makeup of the team. Also submit a 1-page budget. Proposals should be submitted electronically to info@csj.co.ug.

Schedule Timing
Submission of proposals February 5, 2024
Reviewing proposals and selection of consultant/organization February 9, 2024
Kick-off meeting that includes an overview of the methodology for the research February 13, 2024
Desk review and interviews From February 13, 2024 to March 1, 2024
Submission of the first draft of the report March 6, 2024
Powerpoint presentation to CSJ and to the Consortium partners March 8, 2024
Submission of the final draft of the report and powerpoint March 15, 2024
UGCSJ MD reserves the right to negotiate and award this contract with the contractor who demonstrates the best approach, rather than on awarding this contract solely based on the lowest cost. This solicitation does not require UGCSJ MD to award a contract.

Note that only shortlisted consulting firms/individuals will be contacted. If you have not received communication from UGCSJ MD within four weeks from the submission deadline, consider your bid unsuccessful.