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).
Disaster risk financing
Financial arrangements made in advance to pay for disaster prevention, response and recovery.
International premium support
Premium support is international funding to pay for insurance premiums.
Hazard
A natural or human process that can cause injury, damage or disruption.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
Anticipatory Action
Actions taken before a crisis hits to prevent or reduce potential disaster impacts prior to a shock or before acute impacts are felt.
Vulnerability
Conditions that increase how severely people or communities are affected by hazards.
