Glossary
Parametric insurance
A type of insurance that does not indemnify the pure loss but agrees before the event to make a payment dependent on an index. Also known as index insurance. (Clarke and Dercon, 2016).
other key terms
International development financing
Public funding flows supporting development objectives in lower income countries.
Development bank
A public financial institution providing loans, grants and expertise to support development goals.
Risk retention
When governments retain and finance disaster costs themselves.
Disaster risk financing
Financial arrangements made in advance to pay for disaster prevention, response and recovery.
Sustainable development
Meeting today’s needs without limiting future generations’ ability to meet theirs.
Accountability
Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.
