Glossary

International premium support

Premium support is international funding to pay for insurance premiums. It is paid to or on behalf of vulnerable countries or humanitarian actors to buy insurance coverage (Centre for Disaster Protection).

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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.

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The growing scale, duration and impact of refugee crises requires innovative approaches to financing.

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other key terms

Disaster risk financing

Financial arrangements made in advance to pay for disaster prevention, response and recovery.

Covariate shocks

Shocks affecting many households at once where losses are shared across the same community.

Cost multiple

The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.

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.

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.

Disaster risk finance diagnostic

An analytical assessment of a country’s disaster risk profile.