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 moreRisk profile
Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Risk layering
Using different financial instruments for different disaster frequencies.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Development insurer
An insurer supporting development goals through insurance products and technical assistance.
