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).
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
International development financing
Public funding flows supporting development objectives in lower income countries.
Prevention
Actions taken to avoid or reduce the impacts of future crises and hazards.
Vulnerability
Conditions that increase how severely people or communities are affected by hazards.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
