Agricultural insurance has evolved considerably since the 1990s, away from costly and publicly provided MPCI programs towards insurance tied to named perils and index-based products. The private sector has also expanded its role, but in less-developed countries mostly through public-private partnerships that combine the efficiency of the private sector in delivering insurance with targeted financing by the state. There has also been growth in the role of various types of nonprofit agencies (e.g. NGOs, microfinance organizations and farmer groups) in delivering insurance to farmers, especially poor ones, and these have also formed partnerships with private insurers. Despite these developments, agricultural insurance remains far too small to meet the risk management needs of most farmers and rural people in developing countries, or to protect them from distress when natural catastrophes occur. Relief programs have had to help fill the gap, but the reality for most smallholders is that they must manage risks on their own, and this can have high economic and humanitarian costs. These costs seem likely to increase as population pressures in many high-risk areas continue to grow, and as climate change increases the frequency and severity of many natural hazards.