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).

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other key terms

International development financing

Public funding flows supporting development objectives in lower income countries.

Crisis protection gap

The difference between expected crisis costs and funding already arranged to cover them.

Development insurer

An insurer supporting development goals through insurance products and technical assistance.

Parametric insurance

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

Climate resilient debt clause or 'debt pause clause'

A provision in sovereign debt contracts that enables the borrower to temporarily stop repaying debt service for a pre-agreed period when a predefined event occurs.

Risk transfer

When disaster risk is shifted to insurers or capital markets.