MicroEnsure operates two main weather index insurance products in Rwanda :

• weather station-based product that provides coverage against dry spells and excess rain. To insure against the effects of dry spells, cumulative rainfall is measured daily over a pre-determined period (typically between 30 and 45 days). If the cumulative rainfall falls below a set threshold for the period, a payout is made. Payouts increase depending on the severity of the weather event, typically providing an additional percentage payout of the sum insured for every deficit millimeter of rainfall below the threshold. To insure against the effects of excess rainfall, rainfall is measured daily for the insured period. If the cumulative rainfall for a set period (typically three days) is below the pre-determined threshold, an increasing payout is made depending on the severity of the event. Weather station-based products measure rainfall at a single location, and farmers are eligible to be insured provided that farms are within a given radius of the weather station location.

• satellite-based product that also provides coverage against dry spells and excess rain. Cumulative rainfall over a number of consecutive decades (typically three decades for dry spells and one decade for excess rainfall) is measured. If rainfall falls below, or increases above the ‘normal’ for the same period, a payout is made. Payouts increase depending on the severity of the weather event, but typically provide an additional percentage payout of the sum insured for every deficit or additional percentage point of rainfall below or above the threshold. Satellite-based products estimate rainfall within a given area, which typically gives a better average than weather station-based products.