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).
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Contingent loan (or credit) and grants
A pre approved loan or grant released automatically when agreed crisis conditions or triggers are met.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Basis risk
The gap between measured indicators and real losses causing payouts to differ from actual damage.
