Covariate shocks
Covariate shocks are those which affect many people in the same community at once; the experience of one household is highly covariate with that of other households in the community (Jalan and Ravallion 1999).
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
Development insurer
An insurer supporting development goals through insurance products and technical assistance.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
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.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
Disaster risk finance diagnostic
An analytical assessment of a country’s disaster risk profile.
