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

Total crisis financing

Development funding focused mainly on crisis prevention, preparedness and response activities.

Risk transfer

When disaster risk is shifted to insurers or capital markets.

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.

Sustainable development

Meeting today’s needs without limiting future generations’ ability to meet theirs.

Disaster

A severe event causing widespread harm that exceeds a community’s ability to cope alone.

Other official flows (OOF)

Public funding supporting development that does not meet official aid definitions.