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

Shock-responsive social protection

Social protection systems adapted to scale quickly when large shocks affect many people.

Attachment point

The loss level above which a reinsurer begins paying under a reinsurance agreement.

Accountability

Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.

Ex ante

Actions, decisions or financial arrangements made before a disaster or crisis occurs.

Crisis

A situation where severe needs overwhelm local and national capacity to respond effectively.

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.