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

Parametric insurance

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

Trigger

A predefined threshold that activates payments or actions within risk financing mechanisms.

Official development assistance (ODA)

Public aid supporting development and welfare in eligible countries, usually on concessional terms.

Other official flows (OOF)

Public funding supporting development that does not meet official aid definitions.

Accountability

Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.

Crisis protection gap

The difference between expected crisis costs and funding already arranged to cover them.