Sahel

The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.

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

A catastrophe bond (cat bond) is a risk-transfer financial instrument that allows governments or insurers to transfer disaster risk to capital market investors.

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

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

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