Contingent loan (or credit) and grants
A type of pre-arranged financing whereby a loan or grant is approved in advance of a crisis and is guaranteed to be provided to a specific implementer when a specific pre-identified trigger condition is met (Centre for Disaster Protection).
This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.
Read more
This working paper asks what is required for social protection systems to deliver timely, predictable, well-targeted and cost-effective shock response to disasters.
Read more
This insight paper provides an overview of the key features of debt pause clauses, also known as climate resilient debt clauses.
Read more
This brief forms part of a cross-country study on the opportunity cost of reallocating budgets in response to disasters.
Read moreBasis risk
The gap between measured indicators and real losses causing payouts to differ from actual damage.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
Crisis protection gap
The difference between expected crisis costs and funding already arranged to cover them.
Cost multiple
The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
