Glossary

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).

Learn more
other key terms

Accountability

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

Attachment point

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

International premium support

Premium support is international funding to pay for insurance premiums.

Vulnerability

Conditions that increase how severely people or communities are affected by hazards.

Catastrophe bond

A catastrophe bond (cat bond) is a risk-transfer financial instrument that allows governments or insurers to transfer disaster risk to capital market investors.

International development financing

Public funding flows supporting development objectives in lower income countries.