Glossary
Development bank
Financial institution that offers financing (typically in the form of loans and grants) and complementary technical assistance, tied to explicit development objectives (Centre for Disaster Protection).
other key terms
Risk transfer
When disaster risk is shifted to insurers or capital markets.
Risk layering
Using different financial instruments for different disaster frequencies.
Parametric insurance
Insurance that pays when an agreed indicator reaches a set level, not actual losses.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
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.
