Glossary

Sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (UN 1987).

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This brief forms part of a cross-country study on the opportunity cost of reallocating budgets in response to disasters.

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This guidance document offers practical steps on how to capture lessons from DRF initiatives.

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We explore the key issues in developing a methodology for calculating pre-arranged funding.

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This research has highlighted the flaws in the current system which is not always able to support response where need is greatest.

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It is well known that in the event of a disaster, the speed of response is key, this report examines the options that may be available.

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This guidance note sets out practical ways to ensure quality, independent scrutiny and improved learning in your DRF initiatives.

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This synthesis report examines the role that insurance can play in supporting sustainable development and growth

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other key terms

Parametric insurance

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

Catastrophe bond

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

Ex ante

Actions, decisions or financial arrangements made before a disaster or crisis occurs.

Indemnity insurance

Insurance that pays based on assessed losses after damage to a specific asset.

Contingent liabilities

Possible financial obligations that only become real if specific future events occur.

Disaster

A severe event causing widespread harm that exceeds a community’s ability to cope alone.