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The ADB Contingent Financing Grant is a grant made available upon a soft trigger (for instance, declaration of state of emergency) with a disbursement-linked repayment schedule.


The African Disaster Risk Financing Programme(ADRiFi) supports eligible countries to access risk transfer services through premium support for parametric weather insurance offered by African Risk Capacity. Between 2019 and 2023, ADRiFi will support premium financing: until the 4th year of participation, a country will receive premium support of up to 50% of the country’s annual premium, and from the 5th year onward, countries will be in a better position to fully finance their premiums from their national budgets and maintain sustained domestic resource allocation for insurance premium. ARC insurance allows for pay-outs being disbursed automatically when pre-defined risk thresholds are exceeded.


Long term nature grants provided to fragile states that include rehabilitation and reconstruction operations that aim to repair the damage caused by natural or man-made disasters. For instance, repairs and reconstruction of damaged infrastructure and equipment, assistance in the revival of economic activities and social services, rehabilitation or reconstruction of roads, bridges, water and sewerage systems, schools, hospitals, or industrial and agricultural complexes. The focus is to bring economic and social infrastructures back to pre-disaster levels. These operations would also include preparedness activities that enable a country to forestall or prepare itself to better withstand emergency situations.


Emergency funds provided by the African Disaster Risk Financing Programme (ADRiFi), a programme that aims to enhance the resilience and response to climate shocks in African countries.


In its capacity as a regional risk pool, the African Risk Capacity (ARC) allows participating countries to pool their country-specific risk into a single, better diversified portfolio, which results in a substantial reduction of premium costs. ARC is a Specialized Agency of the African Union established to help African governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters.


ARC Replica is a parametric (index) insurance product offered by ARC Ltd to World Food Program and other humanitarian partners as an approach to expand climate risk insurance coverage to more people and improve the effectiveness of emergency humanitarian response. ARC Replica Coverage allows UN agencies and other humanitarian actors to match ARC country insurance policies. By matching country policies, international resources would be used more cost-effectively through participation in ARC’s government-led risk management system while doubling the coverage of climate risk insurance. Humanitarian agencies would purchase replica insurance policies, thus doubling the level of coverage in each participating country.


The first multi-country risk pool and regional catastrophe fund, Caribbean Catastrophe Risk Insurance Facility (CCRIF) provides parametric insurance, which disburses funds based on the occurrence of a predefined level of hazard and impact.


Standardized decentralized institutional structure that provides a revolutionary solution for the most efficient transfer of insurable risks from the governments to the international financial markets. Through it, each participant country will be able to:
• Mitigate the financial impact of natural disaster events.
• Strengthen growth stability in their economies by transferring the risk to the international insurance and capital markets.
• Obtain efficient financial coverage of extraordinary public expenditures during emergencies immediately after a catastrophic disaster.


Pacific Catastrophe Risk Insurance Company (PCRIC)
Established under the World Bank Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), PCRIC provides a market based sovereign risk insurance to Pacific Island Countries. The Company also provide technical assistance to Pacific Island Countries (PICs) on disaster risk modeling and assessment. More broadly, the company advises PICs on integrated financial solutions for the reduction of their financial vulnerability to natural disasters.


Risk-linked security instrument designed to mobilize money in case of a catastrophe such as a hurricane or earthquake. If the bond issuer suffers a loss from a particular pre-defined catastrophe, such as a hurricane or earthquake, their obligation to pay interest and/or repay the principal is either deferred or completely forgiven.