Background
The main objective of the project is to enhance the climate resilience of Armenia in the highest risk sectors and areas and ensure national ownership through enhanced institutional knowledge and responsibility. Specific objectives are to mitigate the climate change risks of rural communities through mainstreaming climate risk management in the rural development planning process, applying/testing risk mitigation measures in agricultural practice, increasing stakeholders’ awareness on the threat to climate change on the agricultural sector, and strengthening the risk management and adaptive capacities of vulnerable communities.The main principles of the project will be mainstreaming disaster risk reduction and climate risk management into planning process, capacity development on local level, climate change risk mitigation and preparedness, climate risk reduction management.
The overall objective of this study is to identify challenges for introduction of the agricultural insurance in Armenia, identify Road Map for gradual implementation of most applicable crop insurance scheme in Armenia. The international expert’s task objective will be in consultation with national stakeholders, assist in justification of the importance of the crop insurance as one of main mechanisms of climate risk management, and identify the needs, gaps, and feasible schemes for agricultural insurance in the given context of the country. Based on best available international practice propose road map for introduction of insurance mechanism.
Duties and Responsibilities
Under the overall supervision of Environmental Governance Portfolio Analyst and direct supervision of the Climate Change Programme Coordinator, acting in close collaboration with the national experts the international expert / consultant will be responsible to carry out the following tasks using consultative and participatory approaches:
- Conduct a comprehensive investigation of the different agricultural risk management models, including worldwide used insurance schemes and ones applied in the countries with similar economic development context;
- Undertake situational analysis to determine Armenia’s needs in insurance services for agricultural sector taking into account the climate change risks through i) intensive consultations, meetings and discussions with ministry representatives, other stakeholders, and ii) necessary literature and data review, and iii) comparative analysis;
- Describe the agricultural insurance market for Armenia: the main stakeholders (insurers) and the clients (end-users, farmers, others);
- Give a comparison of different methods and describe the main risks and usefulness in using various approaches for insurance (micro-finance for adaptation to climate change, index-based insurance for crops, whether-index-based insurance, etc.) including: i) basic risk, ii) role of government, iii) the development impact, iv) costs and benefits for the users;
- Determine the most important institutional and legal gaps preventing development of agricultural insurance in Armenia;
- Develop a road map for launching of insurance scheme in Armenia (or pilot scheme);
- Conduct stakeholder analysis of the agricultural insurance market, including state entities responsible for provision of climate and weather related data, hedging companies, etc.;
- Assess the viability of mentioned financial services for Armenia and its rural communities;
- Determine the most appropriate agricultural insurance service to enhance local insurance activities;
- Provide recommendations to develop the identified services;
- The recommendations will be presented to the national stakeholders and insurance agencies during the workshop organized by the Project.
The project management will provide necessary in-country assistance including: transportation, translation and meeting arrangements, provision of necessary background information and office facilities.
The following deliverables and indicative schedule are expected from the consultancy contract. Exact dates of beginning and completion stages as well as scope of works for each phase can be adjusted by the Project Manager based on reasonable justification by the Consultant.
The project reserves the right, if necessary, to amend the terms of reference of the Consultant based on a written agreement. All deliverables should be submitted to the project by the Consultant in English.
The following deliverables and indicative schedule are expected from the consultancy contract. Exact dates of beginning and completion stages as well as scope of works for each phase can be adjusted by the Project Manager based on reasonable justification by the Consultant.
The project reserves the right, if necessary, to amend the terms of reference of the Consultant based on a written agreement. All deliverables should be submitted to the project by the Consultant in English.
Deliverables and number of working Days:
Home-based-13 days
- Desk study of documents, strategies, etc.;
- Road map for gradual implementation of most applicable crop insurance scheme in Armenia is identified and drafted.
Mission to Armenia-12 days
- Consultations, meetings with stakeholders conducted;
- The viability of Armenian financial services is assessed;
- Recommendations for insurance scheme applicable to Armenia are drafted;
- Presentation during the organized workshop is conducted.
Financial proposal
Applicants are requested to provide financial proposal including daily consultancy fee, mission travel costs, per diem, etc.
Payment will be done in 2 installments, upon timely submission of respective deliverables and their acceptance by the Climate Change Programme Coordinator and UNDP RBEC Climate Change Policy Adviser.
A complete application package should include:
- P11 form;
- Letter of motivation;
- Information on previously conducted similar assignments and if possible samples of reports assignments.
Competencies
- Thorough knowledge of agriculture sector climate risk management and adaptation to climate change;
- Good feel for business opportunities and entrepreneurship in relation to (micro) insurance;
- Strong interpersonal and communication skills;
- Excellent analytical and presentation skills;
- Strong organizational skills, ability to interact productively in a team;
- Timely delivery of good-quality products;
- Excellent communication skills, result and client oriented.
Required Skills and Experience
Education:
- An advanced post-graduate degree (preferably at MSc level or above) in insurance and finance, market analysis, economics, financial management or a related discipline.
Experience:
- At least 5 years of professional experience in the finance sector; demonstrated experience conducting financial market assessments;
- Proven experience in development of the insurance products, particularly in the agricultural insurance;
- Experience in working and collaborating with governments is an asset.
Language:
- Proficiency in English;
- Good knowledge of written and spoken Russian is an asset.