Agricultural index insurance products are linked to an index, such as temperature, rainfall, crop yield or evapotranspiration, rather than actual loss.

Daily information from satellites, enables independent and continuous monitoring of climatic conditions for crop growth.

This information is used by insurance companies for risk assessment, insurance pricing, and for pay-out calculation. In sub-Saharan Africa, smallholder farmers are vulnerable to risks associated with changing weather patterns.

In Uganda, the SUM-Africa project provides satellite based drought Index Insurance to protect farmers.

For more details watch the following video produced by the Netherlands Space Office.