Consultancy Request:

Lessons Learned Research on Parametric Insurance

The Request

Tearfund is both a relief and development organisation and as such has responded to different disasters and emergencies over our 50+ year history. We have developed a range of disaster management approaches spanning anticipation, preparedness, response and recovery, in addition to strengthening resilience and reducing the risk of disasters in communities. Our objective is to ensure that our disaster management work goes beyond response, to build resilience and preserve hope in the communities we serve.

Tearfund is seeking consultant(s) to undertake a lesson learned research on parametric insurance research. The consultancy will involve both desk-based research of project documentation and field-based research in Konso and Borean Zones.

Background

Tearfund Ethiopia Country Office in partnership with Viamo (Ethiotelecom), Jamii.one, Ethiopia Meteorological Institute (EMI), Nyala Insurance Company, Global parametric insurance (GPI) , Oromia Insurance company(OIC) and Enat bank, has been implementing the Project entitled “Digital Anticipatory Response (DAR)” in the Borena Zone of Oromia Regional State and Konso Zone of South Ethiopia Regional State.The project has been delivering weather forecasting information, financial services, and insurance to over 20,000 pastoralist and farmer communities. This initiative is crucial for Tearfund's work because it aligns with their mission of reducing poverty and injustice through sustainable development and disaster response. By equipping communities with weather forecasting information, financial services, and insurance, DAR empowers them to become more resilient in the face of climate challenges.

The research will help to fill the gap in evidence on the effectiveness of anticipatory action programs in the context of drought. The research will also explore Parametric insurance and the use of mobile technology to deliver anticipatory action interventions. Tearfund will depend on the findings of the research to develop more effective programs to support communities in preparing for and responding to climate change.

Purpose of the Research

The general objective of the research is to assess the effectiveness of climate-based parametric insurance products in helping smallholder farmers and pastoralists to recover quickly from extreme weather events and to determine the financial incentives required to sustain parametric insurance ownership in agro-pastoralist communities.

The specific objectives of the research are to:

• Assess the impact of financial and digital inclusion in the targeted communities to mitigate the negative impacts of extreme weather events on their livelihoods.

• Assess the awareness and understanding of parametric insurance among cooperative and

  SHG members.

• Identify the financial incentives that are most effective in encouraging farmers to purchase and maintain parametric insurance, including subsidies, premium discounts, and other financial benefits.

• Determine the factors that influence farmers' decisions to purchase and maintain parametric

  insurance, including risk perception, trust in insurance providers, and understanding of the insurance product.

• Develop recommendations for improving the design and delivery of parametric insurance

  products to better meet the needs of smallholder farmers and promote their resilience to extreme weather events.

For full information please refer this linked document: DAR-Research-TOR and Design-2025.pdf - Google Drive

Person / Team Specification

This research consultancy may be met by an individual or by a team put together by a lead consultant. If met by a team then the lead consultant will be responsible for the overall quality and delivery of the required deliverables. The consultant(s) must be fluent in English and able to write to a high standard in English suitable for sharing with high-requirement international donors.

They must have experience in conducting project evaluations and impact assessments and be skilled in both quantitative and qualitative research methodologies, delivering a quality and rigour that would satisfy peer review; familiarity with outcome harvesting methodologies would be advantageous as would the ability to speak local languages from where the work is taking place. The ability to analyse and draw deductions from the data is essential rather than simply collecting and collating data.

An understanding of both Parametric insurance and Digital platform is essential, experience of working in drought-affected contexts is highly desirable. The applicant researchers should have at least 5 and above years experience in research/consultancy services, special focus on disaster risk reduction works, rural development, digital technology. Prior experience of this kind of research is an asset.

To be considered eligible – it is compulsory to submit the following document with your bid;

1. Renewed Business license and Commercial registration certificate

2. Tax Identification Number (TIN) certificate

3. Value Added Tax(VAT) certificate (if VATis tobe charged)

As this research will be conducted in Ethiopia, applications from consultants based in Ethiopia are strongly encouraged.

How To Apply

We invite interested individuals, groups and firms to submit the following documents (in English) to abebe.haile@tearfund.org and hayat.hassen@tearfund.org, before or on 15 Feb 2025 cc to habtamu.ayza@tearfund.org and betelhem.bezabh@tearfund.org. You are welcome to get in touch with Abebe Haile and Habtamu Haile Gorgis if you have any questions throughout the application process.

• Cover letter: A letter addressing the evaluation criterion and indicating availability during the proposed evaluation time frame (maximum 2 sides of A4)
• Experience: CVs for the consultant(s) who will undertake the evaluation, detailing relevant experience (maximum 4 sides of A4 each)
• Technical Proposals: A proposal (maximum 6 sides of A4) which includes the consultant’s (or consultants’) understanding of the TOR and its objectives and that outlines the proposed methodology; work plan/schedule, main risks and how these will be mitigated
• Financial Proposal: including Consultant(s) itemised daily consultancy costs, data collection and other associated costs, as deemed appropriate. The proposal should exclude all in-country and travel costs as these will be arranged by Tearfund - no per diems will be paid.
• Previous work: Two examples of similar evaluation reports written by the applicant. If these were co-authored, then please include a description of the role of the named Consultant.

1.  Attachment: Research Terms of Reference