Glossary

Trigger

A trigger is a predefined threshold of an index underlying a risk finance mechanism which, if exceeded, prompts a payout. A trigger may also leave an element of discretion to a designated party about whether or not to launch a response activity (Centre for Disaster Protection).

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A practical note on Debt Pause Clauses, the first of a series of documents designed to help governments and practitioners understand and compare financial instruments.

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This policy brief examines the first real-world use of debt pause clauses - contractual mechanisms that allow sovereign borrowers to temporarily defer debt payments in the wake of a disaster.

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This report offers lessons on the process of developing the trigger for the Malawi AA Framework and captures lessons on how AA pilots are being designed and implemented in real time.

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Alongside the Airbel Research and Innovation Lab we provide key lessons for how effective crisis response can be financed and triggered

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Practical guidance on contingency planning a before a disaster strikes to support a faster, more coordinated, and ultimately, more effective response.

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This publication explains the importance of thinking strategically and sets out four principles for taking a strategic approach, with practical advice and resources.

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This paper summarises the different shocks created by the global Covid-19 crisis.

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This paper proposes an innovative approach to financing contingent liabilities using IDA.

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other key terms

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.

Covariate shocks

Shocks affecting many households at once where losses are shared across the same community.

Attachment point

The loss level above which a reinsurer begins paying under a reinsurance agreement.

Hazard

A natural or human process that can cause injury, damage or disruption.

Preparedness

Skills, systems and resources developed to respond effectively to likely future crises.