About World Bank Treasury  |  FAQ  |  Contact:  
|  
  

Protecting Development Resources

 

Related

World Bank Disaster
Risk Management

GFDRR Disaster Risk
Financing and Insurance

Climate Finance

Latest News

RELEASE
New Insurance Facility to Boost Natural Disaster Resilience in
Pacific Island Countries

Nov 2, 2016

RELEASE
Uruguay Partners with the World Bank to Reduce its Exposure to Oil Price Volatility
Jun 15, 2016

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

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

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

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

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

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

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

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

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

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

FEATURE STORY
Making the Philippines More Resilient to Natural Disasters
Jan. 2012

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

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

RELEASE
Philippines signs US$500 Million
Cat DDO

Sept. 28, 2011

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

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

View All News >>

 

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.