Glossary

Indemnity insurance

A (re)insurance contract which pays out compensation worth the ultimate net loss of a specific asset. This type of insurance can be useful in protecting high-value assets such as homes, where there is a relatively narrow scope of potential loss. Insurance payouts are determined based on an assessment of losses after an event has occurred (InsuResilience Global Partnership 2020).

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This insight paper aims to support policymakers and practitioners as they seek to scale up financial protection against climate-related shocks through sovereign insurance solutions.

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other key terms

Development insurer

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

International premium support

Premium support is international funding to pay for insurance premiums.

Disaster risk finance diagnostic

An analytical assessment of a country’s disaster risk profile.

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.

Risk profile

Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.

Total crisis financing

Development funding focused mainly on crisis prevention, preparedness and response activities.