A new interactive dashboard launched by the Centre for Disaster Protection is providing the first detailed country level view of how pre arranged disaster financing works around the world.
The platform called the State of Pre Arranged Financing (PAF) Dashboard covers 82 countries and tracks data from 2017 to 2024, allowing governments, researchers and development agencies to examine how countries prepare financially for disasters and how quickly funds are released when crises occur.
According to the Centre for Disaster Protection, pre arranged finance reached USD 9.2 billion in 2024. These financial instruments are designed to provide funds before disasters occur, enabling governments to respond rapidly when floods, droughts, earthquakes, cyclones or other hazards strike.
Until now most data on disaster financing was available only in aggregate form. The new dashboard breaks down information by:
• Country
• Region
• Hazard type
• Financial instrument
• Funding provider
• Coverage levels
• Actual payouts
This allows users to compare how different nations are managing disaster risks.
One of the dashboard’s key features is its ability to show both financial protection coverage and actual disaster payouts.
For example, Peru maintained protection through catastrophe bonds, contingent credit facilities and Catastrophe Deferred Drawdown Options (Cat DDOs).
Following severe flooding in 2018, Peru received a USD 70 million payout through a Cat DDO for reconstruction efforts. After an earthquake in 2019, a catastrophe bond provided another USD 60 million in assistance.
The dashboard helps policymakers evaluate whether existing financial protection mechanisms are providing adequate support during emergencies.
Examples from Malawi and Nepal
The data also highlights how countries use different financing tools to address multiple hazards. In Malawi three separate drought related payouts were made in 2024:
• USD 57 million through a World Bank contingent disaster grant.
• USD 11.6 million through regional insurance programs supported by the African Risk Capacity (ARC).
The staggered payments demonstrate a strategy known as “risk layering,” where multiple financing mechanisms work together to address different stages of a disaster.
Meanwhile Nepal used a single World Bank Cat DDO facility to respond to two separate disasters over four years. The country drew funds for flood recovery in 2020 and later for earthquake recovery in 2024, showing how flexible contingent credit can support multiple emergencies.
Why Pre-Arranged Finance Matters
Pre-arranged finance is increasingly viewed as a critical tool in disaster risk reduction because it allows governments to access funds quickly rather than waiting for emergency aid after a catastrophe occurs.
Benefits include:
• Faster disaster response.
• Reduced economic disruption.
• Quicker recovery and reconstruction.
• Improved protection for vulnerable communities.
• Greater financial stability for governments.
While the dashboard provides detailed information on coverage and payouts, it does not yet include all contractual details such as trigger mechanisms, repayment conditions, pricing structures or eligibility requirements.
To address this, the Centre for Disaster Protection is developing plain language guides explaining how different disaster financing instruments work and when governments may choose to use them.
As climate change increases the frequency and severity of floods, droughts, storms and other hazards, financial preparedness is becoming a central part of disaster management strategies worldwide.
The new dashboard offers policymakers and researchers an important tool to evaluate how disaster financing performs in practice, helping countries strengthen resilience and improve their ability to recover from future shocks.