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
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.
Disaster
A severe event causing widespread harm that exceeds a community’s ability to cope alone.
Hazard
A natural or human process that can cause injury, damage or disruption.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Disaster risk finance diagnostic
An analytical assessment of a country’s disaster risk profile.
Disaster risk financing
Financial arrangements made in advance to pay for disaster prevention, response and recovery.
