Glossary

Risk layering

Using different financial instruments for different disaster frequencies.

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This report shows how IDA could line up more money before disasters hit, reach more countries, and keep the cost down - and what IDA 22 can decide to get there.

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This report offers an in-depth assessment of pre-arranged financing tools using seven key criteria for ensuring pre-arranged financing reduces the human and financial costs of disasters

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other key terms

Basis risk

The gap between measured indicators and real losses causing payouts to differ from actual damage.

International crisis financing system

The network of global organisations funding crisis prevention, preparedness and response.

Risk transfer

When disaster risk is shifted to insurers or capital markets.

Disaster

A severe event causing widespread harm that exceeds a community’s ability to cope alone.

Crisis risk

The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.

Development insurer

An insurer supporting development goals through insurance products and technical assistance.