Glossary

Risk transfer

When disaster risk is shifted to insurers or capital markets.

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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

Development insurer

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

Basis risk

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

Hazard

A natural or human process that can cause injury, damage or disruption.

Resilience

The ability to withstand shocks, adapt, recover and continue functioning over time.

Crisis

A situation where severe needs overwhelm local and national capacity to respond effectively.

Disaster risk financing

Financial arrangements made in advance to pay for disaster prevention, response and recovery.