The World Bank recently conductedresearch and concept-testing activities to investigate theexpansion of the index approach from drought to flood. Themain objective was to assess prerequisite conditions, aswell as practical and efficient methods, to conceptualizeand potentially implement index-based insurance foragricultural flood losses. In addition, the work assessedhow modern technologies such as flood modeling and remotesensing-which are widely used to support flood risk mapping,and flood detection, warning and control-could be harnessedto support the design of such flood insurance programs forrural clients. This paper summarizes the findings from workcarried out from September 2005 to April 2008 in the MuangPetchaboon District of the Petchaboon province in Thailand.The next section illustrates the importance of flood risk inagriculture and challenges in providing flood insurance. Thefollowing section describes the flood index insuranceconcept and methodology that were tested during thefeasibility study. Section four highlights the findings fromthe Petchaboon province of Thailand, and the final sectionsynthesizes lessons learned and recommends areas for futureresearch and applications. Finally, it is important torecognize that the process of quantifying weather risk, andof creating an operational system which combines risk andasset information, have much broader applications thansimply for index-based weather insurance or other risktransfer solutions.
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