Glossary

Risk retention

When governments retain and finance disaster costs themselves.

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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

Social protection

Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.

Index

A measurable indicator used to estimate losses and trigger financial payouts.

Sovereign insurance

Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.

Attachment point

The loss level above which a reinsurer begins paying under a reinsurance agreement.

Crisis risk

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

Covariate shocks

Shocks affecting many households at once where losses are shared across the same community.