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

Catastrophe bond

A catastrophe bond (cat bond) is a risk-transfer financial instrument that allows governments or insurers to transfer disaster risk to capital market investors.

International crisis financing system

The network of global organisations funding crisis prevention, preparedness and response.

International development financing

Public funding flows supporting development objectives in lower income countries.

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.

Risk transfer

When disaster risk is shifted to insurers or capital markets.

Total crisis financing

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