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 moreDevelopment bank
A public financial institution providing loans, grants and expertise to support development goals.
Risk profile
Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
Vulnerability
Conditions that increase how severely people or communities are affected by hazards.
