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 moreSocial protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
Pre-arranged financing
Financing approved before crises that is released automatically when agreed triggers are met.
Crisis protection gap
The difference between expected crisis costs and funding already arranged to cover them.
Other official flows (OOF)
Public funding supporting development that does not meet official aid definitions.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
Early warning system
Systems that monitor hazards and share information early, so people can act in time.
