This paper focuses on the potential of index-based weather insurance products contributing to a green revolution in Africa. A conceptual framework is built that links poverty, risk, and missing financial markets and a case is presented on how weather risk transfer and agricultural insurance can contribute to development. Both the conceptual discussion of index-based insurance and the pragmatic suggestions of how to develop these markets provide a foundation for analyzing four distinct products that may be applicable in various parts of Africa. Index insurance for drought is currently much further developed than index insurance for other perils. Thus, most of the focus in this paper is on drought.