Satellite Technology and its continued advancement is critical to the relevance and accuracy of index insurance products as a counter against weather-related risks. The World Bank Group’s Global Index Insurance Facility (GIIF) in partnership with its regional partners has been working with researchers and scientists to refine satellite technology for index insurance product design.

This study explores the feasibility of weather index insurance (WII) in providing cost-effective ways for rural dwellers to manage risk and better cope with catastrophic events. The case study analyzed is drought coverage for maize production risk in Eastern Indonesia. Indonesia is considered one of the more vulnerable countries to hydro-meteorological risks in Asia. In some agricultural areas, harvest and production dip significantly during ENSO (El Niño Southern Oscillation) events due to belownormal rainfall. Indonesian production is highly dependent upon rainfall. Only 17 percent of the

Asia and the Pacific region has one of the highest exposures of any region in the world to natural hazards including typhoons, floods, landslides, droughts, earthquakes, volcanic eruptions and tsunamis. Weather-related risks, particularly hurricanes, flooding and drought, are a frequent occurrence and affect crop yields, livelihoods and assets, and the personal safety of vulnerable groups across the region. The frequency with which these disasters occur often taxes the ability of such groups to rebound quickly, increasing their risk of hunger and malnutrition. Low-cost agricultural insurance