International pre-arranged financing for disasters hits record USD 9.4 billion in 2024
London, 16 December 2025 — New global analysis reveals a sharp rise in proactive disaster risk finance across all country groupings, but the poorest and most fragile countries still receive less than 7%.
The Centre for Disaster Protection (the Centre) today launches The State of Pre-Arranged Financing for Disasters 2025, revealing that international pre-arranged financing reached an all-time high of USD 9.4 billion in 2024. This dramatic expansion underscores a growing global commitment to proactive, reliable crisis response at a time of tightening aid budgets and escalating climate impacts.
However, despite the record total, the distribution of pre-arranged financing remains highly uneven. In 2024, low-income countries (LICs) and fragile and conflict-affected situations (FCS) each received less than 7% of total international pre-arranged financing, highlighting persistent inequities in access to and affordability of financial protection.
Other key data points in the report include:
PAF payouts more than doubled in 2024, reversing the decline seen since the COVID-19 peak in 2020. Payouts reached USD 879 million, with World Bank Catastrophe Deferred Drawdown Options (Cat DDOs) accounting for the majority.
In 2022- 2023, meanwhile, support for pre-arranged financing from development partners grew modestly: up 6% that year to USD 889 million, representing around 1.2% of total crisis financing. However, allocations to LICs remain minimal, even as their exposure to climate and disaster risks continues to intensify.
PAF refers to crisis financing that is approved in advance and guaranteed to be released when pre-identified trigger conditions are met. By arranging finance ahead of shocks, countries can respond more quickly, reduce losses and protect vulnerable communities.
Now in its third year, The State of Pre-Arranged Financing for Disasters 2025, written by Michèle Plichta, Senior Researcher, Zoë Scott, consultant, and Darshni Nagaria, Senior Researcher, brings together previously dispersed and often inaccessible data from multilateral development banks, regional risk pools and humanitarian partners. It provides the most comprehensive and up-to-date picture yet of how much pre-arranged financing is being deployed, which countries and regions benefit most, and where major gaps remain. It also notes the surge in pre-arranged financing was driven primarily by a sharp increase in contingent loans - particularly those offered by the World Bank and Inter-American Development Bank - while regional risk pools and catastrophe bonds also continued to play critical roles.
Colin Bruce, Centre for Disaster Protection Board Member and Co-Chair, said: “PAF reached an all-time high of USD 9.4 billion in 2024, with growth across all country groupings and types. But low-income countries and fragile and conflict-affected situations still have the smallest share of pre-arranged financing, and more should be done to support the most vulnerable communities to prepare for and address crisis risks. As we’ve seen in countries hit by recent shocks, having finance ready to flow when disaster strikes can underpin proper planning and help families and businesses recover far more quickly.
“While financial resources are not the only requirement, Hurricane Melissa underscores how essential it is to have funding in place to support effective planning and rapid recovery for families and businesses.”
Kimberly Gire, Centre for Disaster Protection Board Member and Co-Chair, said: “This year’s findings give us the most comprehensive and up-to-date picture yet of how pre-arranged financing is working at a global level. There is unquestionably good news here, with growing momentum behind more proactive approaches to disaster risk. But the report also surfaces challenges. We call on the global community to continue to scale up international pre-arranged financing, improve accessibility and affordability for LICs and FCSs, and strengthen transparency from all actors.”
Michèle Plichta, Centre for Disaster Protection Senior Researcher and report Lead Author, commented: “By consolidating previously inaccessible data, this report aims to bring greater transparency and accountability to the international financing system; an essential step towards ensuring timely, equitable and dignified protection when crises strike.”
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NOTES TO EDITORS
About the Centre for Disaster Protection
The Centre for Disaster Protection (the Centre) is a technical and policy advisory organisation focused on improving how the world plans and pays for disasters.
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