Independent Technical Review of Index-Based Livestock Insurance — Zep-Re

REQUEST FOR EXPRESSIONS OF INTEREST (REOI)

Agency: Zep-Re (PTA Reinsurance Company)

Project: De-Risking, Inclusion, and Value Enhancement of pastoral economies in the Horn of Africa Project (DRIVE) - (P176517)

Assignment Title: Consultancy services for Independent Technical Review of Index-Based Livestock Insurance

Reference No.: KE-ZEP-RE-504245-CS-QCBS

Assignment Location: Regional – Kenya, Somalia, and Ethiopia

Closing Date: December 1st, 2025, at 17:00 hours (East Africa Time)

• Background

Pastoralists represent between 33 and 65 percent of the population in the Horn of Africa (HoA). Overreliance on rainfed agricultural activities makes them particularly vulnerable to climate shocks, including droughts, and they are one of the poorest communities in the region. Pastoralists tend to keep large herds as protection for anticipated drought shocks. Yet when drought hits, the animals either die, lose value, or are sold at rock-bottom prices to fund immediate needs. Emergency response can be subject to leakages or arrive too late after the animals have perished. Furthermore, pastoralists are currently at the bottom of the livestock value chains and are not providing livestock in the required quality and quantity to livestock processors/exporters.

In this context, the World Bank Group (WBG) is supporting De-Risking, Inclusion, and Value Enhancement of pastoral economies in the Horn of Africa Project (DRIVE), a regional International Development Association (IDA) project implemented in Djibouti, Ethiopia, Kenya, and Somalia. The Project will support the climate adaptation of pastoralists and help them extract greater value addition from their livestock. It will protect them against drought with enhanced access to financial services, strengthen their inclusion in the livestock value chain, and facilitate the regional livestock trade.

The Project Development Objectives (PDO) are to enhance pastoralists' access to financial services for drought risk mitigation, including them in the value chains, and facilitate the livestock trade in the Horn of Africa.

ZEP-RE (PTA Reinsurance Company) is contracted by Kenya, Ethiopia, and Somalia to implement component one of Horn of Africa De-Risking, Inclusion and Value Enhancement of Pastoral Economies (DRIVE) project and intends to hire a consulting firm for an Independent Technical Review of Index-Based Livestock Insurance (IBLI).

• Roles and Responsibilities

Specific tasks include:

•

• Validation of IBLI payouts and the process

• Independently validate the IBLI payouts

• Audit the data inputs, calculation logic, and adherence to the terms of the product documentation.

•

• Evaluation of the Index Design

• Review the parameterization process of the index, including dataset selection, season definitions, trigger and exit thresholds, payout calculation methodology and geographical UAI delineation including current masking techniques [For IBLI products, high-resolution land surface classification datasets, such as the European Space Agency’s World Cover data, should be used to identify areas that are (not) suitable at the sub-UAI level. NDVI time series analysis should be used to evaluate the temporal characteristics of individual pixels and identify bare land/sparse vegetation and areas covered by inedible vegetation to livestock (primarily Prosopis) to be excluded. In addition, thresholds should be defined for the minimum proportion of “acceptable” pixels within each UAI.

• Assess the viability of the index across all delineated regions of the three countries, with specific focus on the most arid regions, including Afar in Ethiopia, Turkana in Kenya, and Puntland in Somalia.

• Compare index performance against other drought-related indices and datasets such as Standardized Precipitation Index (SPI), Standardized Precipitation Evapotranspiration Index (SPEI), Soil Moisture Anomaly (SMA), and any other agroclimatic indicators measurements where possible.

• Evaluate index calibration by cross-referencing NDVI time series and historical payouts with other qualitative sources, such as government reports of drought, and undertaking ground truthing exercises to evaluate the effectiveness of the index in accurately reflecting the actual livestock stress and drought conditions experienced (basis risk).

• Propose improvements to data sources and index design to improve the overall quality of the IBLI product.

• SPECIAL TERMS & CONDITIONS / SPECIFIC CRITERIA

Selection Criteria

Eligible consulting firms must demonstrate:

Minimum Experience:

• At least 10 years of experience in insurance product design, risk modeling, actuarial analysis, or agricultural/livestock index insurance.

• Demonstrated experience in independent reviews or technical audits of insurance products, actuarial models, or reinsurance structures.

Specific Experience:

The assignment will require a multidisciplinary team with strong technical and analytical capabilities spanning insurance, actuarial science, remote sensing, climate modelling, data science, and pastoral systems. The team should collectively demonstrate a deep understanding of index-based insurance design and implementation in arid and semi-arid environments, as well as experience working with large climatic and satellite datasets. The consulting firm is expected to propose a team with complementary skills to ensure a rigorous, transparent, and credible review process.

• Completed at least three (3) assignments related to index-based agricultural or livestock insurance, climate risk modeling, or weather-based parametric insurance in the past 7–10 years.

• Demonstrated experience in Sub-Saharan Africa or developing/emerging markets.

Proof Required:

• List of similar assignments completed (with brief description, client, country, contract value, and duration).

• Reference letters or completion certificates.

• Duration of Service

The assignment will be carried out over two phases:

• Phase 1 - Comprehensive design and readiness Review to be completed by end of May 2026.

• Phase 2 - Implementation and performance reviews at end of each season (Aug 2026, Feb 2027 and Aug 2027).

• Duty Station

The assignment covers Kenya, Somalia, and Ethiopia

• ZEP-RE (PTA Reinsurance Company) now invites eligible Consulting firms to indicate their interest in providing these services by attaching the requirements indicated under the selection criteria.

• Submission Requirements: The attention of interested Consultants is drawn to paragraphs 3.14 and 3.21 of the World Bank’s Procurement Regulations for IPF Borrowers: Procurement in Investment Financing Goods, Works, Non-Consulting, and Consulting Services dated July 2016 and revised in November 2017, August 2018, and September 2023 (“Procurement Regulations”) setting forth the World Bank’s policy on conflict of interest and eligibility.

A Consultant will be selected in accordance with the Quality and Cost Based (QCBS) selection method set out in the “Procurement Regulations.”.

• Mode of submission of applications and deadline:

Expressions of interest and CVs must be submitted to the email address below on or before December 1st, 2025, at 17:00 hours (East Africa Time) and marked clearly as Application for Consultancy services for Independent Technical Review of Index-Based Livestock Insurance- KE-ZEP-RE-504245-CS-QCBS on the subject line.