Application of Climate Index for Agricultural Insurance as Efforts to Manage Climate Risks

Saif Akmal

The agricultural sector plays an important role in food security and contributes greatly to increasing food production capacity for community needs. Events due to climate variability that are uncertain, such as drought, make climate a determining factor in the level of production for the agricultural food crop sector. The purpose of this literature review is to discuss how the climate has a significant impact on agriculture and the implementation of agricultural insurance using a climate index. The results of the literature review show that Climate Index Insurance has the opportunity to be applied and developed more broadly in Indonesia.