Index
In risk finance, an index is an indicator or measure that is chosen to be a good proxy for a type of shock, and used to determine payouts. For example, tropical cyclone categories used as an index for property damage or area average yield as a measure of lost agricultural production. Modelled estimates of damage costs are also used as indices (Centre for Disaster Protection).
Parametric insurance
Insurance that pays when an agreed indicator reaches a set level, not actual losses.
Other official flows (OOF)
Public funding supporting development that does not meet official aid definitions.
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.
Hazard
A natural or human process that can cause injury, damage or disruption.
Pre-arranged financing
Financing approved before crises that is released automatically when agreed triggers are met.
Development bank
A public financial institution providing loans, grants and expertise to support development goals.
