Glossary

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.

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This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.

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other key terms

Social protection

Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.

Sustainable development

Meeting today’s needs without limiting future generations’ ability to meet theirs.

Adaptive social protection

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

Official development assistance (ODA)

Public aid supporting development and welfare in eligible countries, usually on concessional terms.

Index

A measurable indicator used to estimate losses and trigger financial payouts.

Prevention

Actions taken to avoid or reduce the impacts of future crises and hazards.