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Protecting Development Resources


Disaster risk financing as part of a comprehensive disaster risk management framework can be an effective tool in mitigating the effects of natural disasters.


World Bank Disaster
Risk Management

GFDRR Disaster Risk
Financing and Insurance

Climate Finance

In the News

Tonga to Receive US $1.27 Million Payout for Cyclone Response
Jan. 23, 2014

Uruguay uses weather derivative to protect itself from drought and oil price volatility
Dec. 18, 2013

Mexico is among the countries better prepared to deal with natural disasters (CNNEXPANSION)
Sept. 19, 2013

An efficient strategy to prevent and manage disaster risks in Mexico Nov. 20, 2012

Is Mexico ready for its next big storm or earthquake?
Nov. 4, 2012

Mexico Launches Second Catastrophe Bond to Provide Coverage Against Earthquakes and Hurricanes
Oct. 12, 2012

Sendai Dialogue Advances Global Consensus on Disaster Risk
Oct. 10, 2012

World Bank Can Now Help Clients Manage Financial Risks Related to Geological and Meteorological Events
Oct. 5, 2012

G20 Urges Action to Counter Rising Costs from Natural Disasters
Jun. 20, 2012

So-called natural disasters are not unpredictable
Apr. 17, 2012

Making the Philippines More Resilient to Natural Disasters
Jan. 2012

Philippines Calls on US$500 million Cat DDO to respond to tropical storm 'Sendong'
Dec. 29, 2011

El Salvador Uses US$50 Million Cat DDO for Flood Emergency
Nov. 8, 2011

Philippines signs US$500 Million

Sept. 28, 2011

One A-Maize-ing Use of Derivatives (derivatiViews)
Sept. 26, 2011

Colombia Disburses US$150 Million Cat DDO
Dec. 28, 2010

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IBRD offers a line of disaster risk financing for direct budget support that provides varying levels of protection depending on the type, frequency, and severity of the event.

Weather hedges

Financial contracts based on an underlying weather index that transfer the risk to the financial markets.  Payments are triggered by adverse weather events according to pre-specified conditions (e.g. levels of rainfall, seasonal temperatures, etc.). IBRD offers intermediation services for index-based weather derivatives to both middle- and low-income countries.

Contingent financing

The Catastrophe Deferred Drawdown Option or Cat DDO provides countries with immediate access to financing following a natural disaster and the declaration of a state of emergency. Countries must have a disaster risk management framework in place.

Catastrophe bonds

Transfer the risk of a natural disaster to investors by allowing the issuer to not repay the bond principal if a major natural disaster occurs. IBRD has developed the MultiCat Program - a bond issuance platform - that transfers diversified risk to private investors.