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, expressed in present value terms.
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 morePreparedness
Skills, systems and resources developed to respond effectively to likely future crises.
Contingent liabilities
Possible financial obligations that only become real if specific future events occur.
Risk transfer
When disaster risk is shifted to insurers or capital markets.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
