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).
Risk transfer
When disaster risk is shifted to insurers or capital markets.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Sustainable development
Meeting today’s needs without limiting future generations’ ability to meet theirs.
Development insurer
An insurer supporting development goals through insurance products and technical assistance.
