This paper is a distillation of thefindings of the work undertaken by the World Bank. It isdeliberately not a collation of case studies, but rather apractical overview of the subject. The purpose of this paperis to introduce task managers and development professionals,who are not insurance sector specialists, to weather indexinsurance. Ultimately, the paper seeks to take the readerthrough the main decision points that would lead to adecision to embark upon a weather index insurance pilot andthen assists them to understand the technical procedures andrequirements that are involved with it. In addition, thepaper seeks to advise the reader of the practical challengesand implications that are involved with a pilot of thisnature and what they might expect to encounter during theinitial stages of implementation. The very nature of anindex based product creates the chance that an insured partymay not be paid when they suffer loss and/or that they mayreceive a payment when they have suffered no loss. Thispaper also does not seek to delve deeply into the technicaldetails and science that lie behind the 'blackbox' that is at the heart of the index.
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