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 moreAdaptive social protection
Social protection systems that adjust to shocks, helping vulnerable people prepare, cope and recover over time.
Basis risk
The gap between measured indicators and real losses causing payouts to differ from actual damage.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Crisis risk
The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.
Contingent liabilities
Possible financial obligations that only become real if specific future events occur.
Pre-arranged financing
Financing approved before crises that is released automatically when agreed triggers are met.
