Glossary

Risk layering

Using different financial instruments for different disaster frequencies.

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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

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.

Financial Flows

Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.

International premium support

Premium support is international funding to pay for insurance premiums.

Sustainable development

Meeting today’s needs without limiting future generations’ ability to meet theirs.

Disaster risk management

Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.

Disaster

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