Financial Protection Rapid-Response Financing

Following a disaster shock, governments require immediate liquidity for emergency response and to maintain basic public services that safeguard the livelihoods of the most vulnerable. However, access to short-term liquidity is often a challenge. Because countries generally have limited budget reserves, governments are forced to reallocate resources away from national development priorities. Without sufficient access to rapid funds and robust budget response systems, the humanitarian impact and financial costs of natural disasters can increase rapidly.

The Disaster Risk Financing and Insurance Program helps governments develop financial protection strategies that increase access to rapidresponse financing instruments that permit more efficient management of climate and disaster shocks. Rapid-response financing strategies are not intended to cover all damage and losses, but rather are uniquely designed to meet the immediate funding gap created when a disaster strikes— providing governments with a quick injection of liquidity to cover disaster-related expenditures.