Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters. Under these arrangements, the government pays a premium and receives a payout when a predefined disaster trigger is met
This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.
Read morePreparedness
Skills, systems and resources developed to respond effectively to likely future crises.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
Indemnity insurance
Insurance that pays based on assessed losses after damage to a specific asset.
Risk profile
Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.
Ex ante
Actions, decisions or financial arrangements made before a disaster or crisis occurs.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
