This chapter explores innovations in index-based risk transfer products (IBRTPs) as a means to address important insurance market imperfections that have precluded the emergence and sustainability of formal insurance markets in developing countries. Using a combination of disaggregated nationwide weather, remote sensing and household livelihood data commonly available in developing countries, the chapter provides empirical illustration of nationwide and scalable IBRTP contracts to analyse hedging effectiveness and welfare impacts at the micro level, and to explore cost effective risk-financing options. Our analysis uses Thai rice production to extend the methodology and implications to enhance development of national and regional disaster risk management in Asia.