MP and Minister of Finance B. Javkhlan submitted a draft law to amend the Livestock Indexed Insurance Act to Chairman of the State Great Hural (Parliament) D. Amarbayasgalan on January 9, 2025.

The Livestock Indexed Insurance Act was enacted in 2014 to protect livestock—considered a vital livelihood source for herders—from dzuds and other unexpected risks. Currently, an average of 11–18% of herder households and 7–10% of total livestock are covered by the insurance annually. The proposed amendments aim to address challenges arising from climate change and the increasing frequency of severe dzuds. Specifically, the draft law seeks to update rigid thresholds for compensation stipulated by the law and introduce provisions for partial advance payments. These advance payments would be based on the annual agreement between the insured herders and the insurance company, enabling quicker financial relief during ongoing severe weather conditions.

The amendments are expected to significantly increase the participation of herders in the insurance scheme, enhance its stability, and reduce the impact of dzud-related risks. Proponents of the draft emphasized that introducing mechanisms for advance compensation will help mitigate the effects of prolonged dzud conditions and support herders in safeguarding their livelihoods.