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).
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.
Read moreAnticipatory Action
Actions taken before a crisis hits to prevent or reduce potential disaster impacts prior to a shock or before acute impacts are felt.
International premium support
Premium support is international funding to pay for insurance premiums.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Crisis protection gap
The difference between expected crisis costs and funding already arranged to cover them.
Official development assistance (ODA)
Public aid supporting development and welfare in eligible countries, usually on concessional terms.
Prevention
Actions taken to avoid or reduce the impacts of future crises and hazards.
