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.

International premium support

Premium support is international funding to pay for insurance premiums.

Ex ante

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

Other official flows (OOF)

Public funding supporting development that does not meet official aid definitions.

Crisis financing

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

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.