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 moreAttachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Disaster risk financing
Financial arrangements made in advance to pay for disaster prevention, response and recovery.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Shock-responsive social protection
Social protection systems adapted to scale quickly when large shocks affect many people.
