Index-based insurance for AAT control

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Designing an index-based insurance to control African Animal Trypanosomosis in sub-humid zone of West Africa PhD candidate, Ahmadou H. Dicko (UCAD, WASCAL) PhD, Jérémy Bouyer (CIRAD) PhD, Marc Müller (FAO) PhD, William M. Fonta (WASCAL)

Transcript of Index-based insurance for AAT control

Page 1: Index-based insurance for AAT control

Designing an index-based insurance to control African Animal

Trypanosomosis in sub-humid zone of West Africa

PhD candidate, Ahmadou H. Dicko (UCAD, WASCAL)

PhD, Jérémy Bouyer (CIRAD)

PhD, Marc Müller (FAO)

PhD, William M. Fonta (WASCAL)

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Background

• The demand for livestock products will double in the 2050horizon (Herrero et al. 2009)

• Most of the livestock products are made by smallholdersin developing countries

• These households are vulnerable to socio-economic andclimatic shocks

• They face many challenges on their daily activities:• Tsetse transmitted trypanosomosis is one of the most

important

(Thornton et al. 2007)

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Tsetse fly and Africa development

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African Animal Trypanosomosis burden

• African animal Trypanosomiasis (AAT) is a fatalvector-borne disease that causes serious economic lossesin livestock.

• Most endemic countries are among the poorest in thecontinent

• Yearly cost of African trypanosomosis is more than 1bnUS$

(Alsan et al. 2013)

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Index-insurance as a solution ?

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Index-based insurance in a nutshell

• Based on a index (e.g NDVI) correlated to the losses• Payout are made on a agreed-upon threshold of the index• Advantages : Low transaction cost and no moral hazardand adverse selection

• Disadvantages : Imperfect correlation between chosenindex and losses ( Basis risk )

• Basis risk have to be as low as possible in an optimalinsurance design

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Index-Based Livestock Index Insurance

.....

Index-based livestock index insurance (IBLI)

.

Impact

. Monitor

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Index-based animal disease insurance

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Index-based animal disease insurance (IBADI)

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Impact

. Monitor

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The key question is how to monitor thelevel of trypanosomosis ?

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Input: Entomological data

10°N

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5°W 4°W 3°W 2°W 1°W

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Input: Bovine trypanosomosis data

• Data from 3 surveys(two from PATTEC)

• Data on:• Serological status• Parasitological

status• Level of anemia• Control variables

(age, cattle breed)10°N

11°N

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Sero. prevalence (%)●

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[0,20](20,40](40,60](60,80](80,100]

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Covariates: remote sensing data

• 10 years of monthlytime series of remotesensing data

• MODIS product(LST, NDVI, MIR)

• Rainfall estimatefrom FAO (RFE2)

RFE

0 20 40 60 80 100

NDVI

−0.2 0.0 0.2 0.4 0.6 0.8

MIR

0.0 0.1 0.2 0.3 0.4 0.5 0.6

DLST

20 25 30 35 40 45 50

NLST

18 20 22 24 26 28 30

DEM

100200300400500600700800

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Material and methods

..Trypanosomosis risk ∼ EIR.

Tsetse apparent density

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Tsetse habitat suitability

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Tsetse infection rates

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Regularized logistic regression

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Count regression

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Logistic regression

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Climate ∼ Remote sensing data

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Material and methods

The chosen index is known by entomological inoculation rate(EIR) or tsetse challenge. It is the mathematical product of:

• Tsetse apparent density• Number of tsetse flies caught per day per trap

• Tsetse infection rates• Trypanosome infection rates on tsetse

This modeling framework extends the tsetse habitat suitabilityindex developed in previous studies (Dicko et al. 2014).

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Predicted risk index (tsetse challenge)

dry2005 rainy2005

0 5 10 15 20 25 30 35 40

Figure: Prediction tsetse challenge for dry and rainysaison 2010

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Index validation against bovinetrypanosomosis data

The relation between EIR and following metrics will beinvestigated:

• Serological test results (antibodies for trypanosome)• Level of parasitaemia (buffy coat techniques)• Illness status (seropositive and anemic)

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Index validation against bovinetrypanosomosis data

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Figure: Prediction on testing data (not used to train the models)