glossary

Glossary of terms

Alternative Risk Transfer (ART)
Instead of using traditional insurance (risk transfer) channels, which do not adequately meet the needs of the development sector, ART (in this context) refers to the practice of transferring the risks associated with undertaking humanitarian relief and development from NGOs and donors to other parties, such as reinsurers and social impact investors. 


Anticipatory Financing
Allocating funds to predicted crisis situations that will require humanitarian aid when they occur. Release of funds happens ahead of an event - in response to a pre-determined set of criteria – with the intention of saving lives and mitigating the effects of the disaster by distributing the funds before it even strikes.   


InsuResilience Global Partnership
Launched at the UN Climate Conference (COP23) in Bonn, in November 2017, InsuResilience is a response to the need for a more comprehensive approach to disaster risk management.  Aimed at strengthening disaster preparedness, rapid response and recovery, the initiative seeks to enable more resilient economic development and help protect lives, livelihoods, businesses, infrastructure and public finances in the world’s most vulnerable communities. The InsuResilience Global Partnership for Climate and Disaster Risk Finance & Insurance Solutions brings together G20 countries, in partnership with the V20 nations, civil society organisations, the private sector and academia.  Social Impact Partners is one of its forty diverse members.  


Parametric Solutions
An innovative type of insurance that covers a predefined humanitarian disaster happening, rather than the traditional insurance approach which covers actual losses (of insured assets) that may occur after a disaster has taken place.  So, instead of receiving an insurance payout to compensate for individual losses incurred when the event happened, payment (up to an insured value) is triggered at the time that it takes place, to ensure funds are immediately available to help in any way they are needed. (A solution that means previously uninsured expenses can be covered.)  


Sustainable Development Goals (SDG)
In line with the global challenges the world faces, the United Nations has developed a blueprint to achieve a better and more sustainable future for all and make sure no one is left behind.  These are encapsulated in 17 interconnected goals, with the target to achieve them all by 2030. They are:

No poverty

No poverty

Zero hunger

Zero hunger

Good health and well-being

Good health and well-being

Health is both a critical input and an outcome of development, and it is an integral part of the SDGs agenda. Together with our clients from the health sector we develop innovative financing solutions for the supply of insecticide-treated bed nets for the prevention of malaria and equally help develop financing solutions for the development of much needed vaccinations.

The insurance sector has a long standing tradition in working with international NGOs and governments on health related issues. The Pandemic Emergency Facility (PEF) was one of the latest outcomes of this cooperation. While every country in the world is susceptible to disease outbreaks, low-income countries with relatively weaker health systems tend to be more vulnerable and less capable of mobilizing the financial resources to effectively respond to major outbreaks. PEF offers coverage to all countries eligible for financing from IDA, the World Bank Group’s fund for the poorest countries and it can provide funding to qualified international agencies involved in the response to a major outbreak in affected countries. The PEF provides more than $500 million to cover developing countries against the risk of pandemic outbreaks over the next five years, through a combination of insurance financed by bonds and derivatives, a cash window, and future commitments from donor countries for additional coverage.

Quality education

Quality education

Gender Equality

Gender Equality

Clean water and sanitation

Clean water and sanitation

Together with our clients we foster private sector participation in the water and sanitation sector through investments, data provision and know-how provision. 

Given the fact that a large number of water pumps in rural areas in developing countries is damaged and does not work properly anymore we currently develop a solution for better maintenance and quicker repair of of these pumps.

Affordable and clean energy

Affordable and clean energy

Decent work and economic growth

Decent work and economic growth

Industrial innovation and infra-structure

Industrial innovation and infra-structure

Reduced inequalities

Reduced inequalities

Sustainable cities and communities

Sustainable cities and communities

Responsible consump-tion and production

Responsible consump-tion and production

Climate control

Climate control

A recent project was focused around the fact that even though there are often forecasts available in the case of natural catastrophes, no humanitarian organization gets funded to act before disaster, especially when there is no certainty and a risk of acting in vain. Scientific information can be incorporated into the humanitarian system here to better prepare for disasters.

Life below water

Life below water

Life on land

Life on land

Peace, justice and strong institutions

Peace, justice and strong institutions

Partner-ships for the goals

Partner-ships for the goals

 

All of our projects are developed in partnership between local NGOs, international NGOs and the private sector. Private capital and private-sector innovation are needed to achieve the SDGs agenda which is why we work on a number of collaboration projects that grant development organizations access to private sector risk knowledge and data for example.


Social Impact Bond (SIB) or Pay-For-Success Mechanism
A social impact bond is a novel form of investment vehicle, usually issued by public sector organisations, that presents a new opportunity for socially conscious investors to give back to their communities.  Designed to fund improved social outcomes – in specific locations and situations – they attract investors who are interested in the social impact of their investment as well as a financial return. The concept is that repayment to investors is contingent on the specific agreed social outcomes being achieved by the implementing parties. Generally, investors provide the initial capital support and as outcomes are achieved governments or social enterprises agree to make payments on that basis, i.e. they pay for success.