Glossary

Vulnerability

The conditions determined by physical, social, economic and environmental factors or processes that increase the susceptibility of a community to the impact of hazards (UNISDR 2016).

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This guidance note is intended as a common framework to support practical approaches to meaningful accountability across the sector.

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This guidance note sets out some questions to help ensure that DRF is most directed to those who are least able to withstand shocks.

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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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The growing scale, duration and impact of refugee crises requires innovative approaches to financing.

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This paper examines the role insurance can play as part of a wider strategy to help societies adapt to climate change and recover from disasters.

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This paper sets out detailed and practical proposals for how the G7 could better protect vulnerable communities by better predicting and preparing for disasters.

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other key terms

Index

A measurable indicator used to estimate losses and trigger financial payouts.

Trigger

A predefined threshold that activates payments or actions within risk financing mechanisms.

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.

Parametric insurance

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

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.