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).
One of the first attempts to insure children's learning against drought. What happens when parametric insurance meets education, and when is it the right tool?
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A predefined threshold that activates payments or actions within risk financing mechanisms.
Crisis protection gap
The difference between expected crisis costs and funding already arranged to cover them.
Accountability
Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.
Risk layering
Using different financial instruments for different disaster frequencies.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
