New global analysis reveals a sharp rise in proactive disaster risk finance across all country groupings, but the poorest and most fragile countries still receive less than 7%.
The Centre for Disaster Protection today launches The State of Pre-Arranged Financing for Disasters 2025, revealing that international pre-arranged financing reached an all-time high of USD 9.4 billion in 2024. This dramatic expansion underscores a growing global commitment to proactive, reliable crisis response at a time of tightening aid budgets and escalating climate impacts.
However, despite the record total, the distribution of pre-arranged financing remains highly uneven. In 2024, low-income countries (LICs) and fragile and conflict-affected situations (FCS) each received less than 7% of total international pre-arranged financing, highlighting persistent inequities in access to and affordability of financial protection.
Other key data points in the report include:
- PAF payouts more than doubled in 2024, reversing the decline seen since the COVID-19 peak in 2020. Payouts reached USD 879 million, with World Bank Catastrophe Deferred Drawdown Options (Cat DDOs) accounting for the majority.
- In 2022- 2023, meanwhile, support for pre-arranged financing from development partners grew modestly: up 6% that year to USD 889 million, representing around 1.2% of total crisis financing. However, allocations to LICs remain minimal, even as their exposure to climate and disaster risks continues to intensify.
PAF refers to crisis financing that is approved in advance and guaranteed to be released when pre-identified trigger conditions are met. By arranging finance ahead of shocks, countries can respond more quickly, reduce losses and protect vulnerable communities.
Now in its third year, The State of Pre-Arranged Financing for Disasters 2025, written by Michèle Plichta, Senior Researcher, Zoë Scott, consultant, and Darshni Nagaria, Senior Researcher, brings together previously dispersed and often inaccessible data from multilateral development banks, regional risk pools and humanitarian partners. It provides the most comprehensive and up-to-date picture yet of how much pre-arranged financing is being deployed, which countries and regions benefit most, and where major gaps remain. It also notes the surge in pre-arranged financing was driven primarily by a sharp increase in contingent loans – particularly those offered by the World Bank and Inter-American Development Bank – while regional risk pools and catastrophe bonds also continued to play critical roles.
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