This study focuses on the assessment of index tools for agricultural insurances. Index insurances basically differ from traditional agricultural insurances in that they do not refer to the actual farm losses, but to the losses evaluated from an index. This index can be, for example, some area yield or revenue, some meteorological or agro-meteorological parameter or a satellite imagery parameter. The analysis considers the coherence with the WTO agreements and the effectiveness to deal with the risk of substantial income reduction of farmers. The study is structured in three main parts. The first part analyses the loss risk from FADN data. The second part evaluates index insurances. The third part makes a cross-validation of index insurances based on FADN data. The analysis covers all 27 Member States of the EU. However, most aspects of the study are restricted to EU-15 because of data availability, in particular for the FADN loss risk assessment, for which long time series are not available for the new MS. Income indicators based on FADN data are taken into account since 1994, yield indicators from Eurostat data since 1975, meteorological and agro-meteorological indicators since 1975 and indicators based on coarse resolution satellite images since 1998.