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).
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.
Read moreDisaster risk financing
Financial arrangements made in advance to pay for disaster prevention, response and recovery.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
Contingent liabilities
Possible financial obligations that only become real if specific future events occur.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Risk transfer
When disaster risk is shifted to insurers or capital markets.
