Index-Based Livestock Insurance First Threshold Set at 5 Percent
Politics
Ulaanbaatar, February 5, 2026 /MONTSAME/. During its regular session on February 4, 2026, the Government of Mongolia updated the threshold indicators for the Index-Based Livestock Insurance (IBLI) to be applied in 2026-2028 to define insured events and allocate risks.
The Government drafted amendments to the Index-Based Livestock Insurance (IBLI) and submitted them to the State Great Khural in January 2025. The amendments were approved in December 2025, lowering the first insurance threshold from 6 percent to 5 percent. As the legally prescribed threshold was reduced, it became necessary to revise the previously set rate, which has now been updated and approved based on actuarial calculations.
The Government of Mongolia implemented the Index-Based Livestock Insurance Project in cooperation with the World Bank from 2005 to 2014 to protect livestock, the main source of livelihood for herder households, from dzud and other unexpected risks. The Index-Based Livestock Insurance was adopted in 2014, establishing the legal framework for in and domestic reinsurance, regulating risk sharing, compensation payments, and the IBLI protection of insured herders’ interests. “Mongolian National Reinsurance” JSC administers nationwide insurance operations.
When
setting insurance thresholds, actuarial analysis is conducted based on
statistical data on large livestock mortality, calculating the probability of
exceeding the threshold. These indicators are reviewed and updated every three
years.
