Glossary

Attachment point

In non-proportional reinsurance, an amount over which a reinsurer agrees to start paying benefits (Reinsurance Glossary 2020).

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other key terms

Disaster

A severe event causing widespread harm that exceeds a community’s ability to cope alone.

Crisis protection gap

The difference between expected crisis costs and funding already arranged to cover them.

Sovereign insurance

Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.

Adaptive social protection

Social protection systems that adjust to shocks, helping vulnerable people prepare, cope and recover over time.

Hazard

A natural or human process that can cause injury, damage or disruption.

Vulnerability

Conditions that increase how severely people or communities are affected by hazards.