Skip to main content

Table 2 Refugee humanitarian financing instruments listed according to risk and time

From: Innovative health financing for refugees

  Dependent upon planning Not dependent upon planning
Risk retention
(refugee host countries are responsible for risk)
Domestic contingency funds or budget allocations: money for emergency relief set aside prior to event
Taxes and subsidies to alter incentives for providing funding
Line of contingent credit: a loan disbursed under certain circumstances
Budget reallocation
Tax increases
Post-emergency credit
User fees
Taxes and subsidies to alter incentives for providing funding
Tariffs or subsidies to alter prices of goods during emergencies
Risk transfer
(refugee host countries transfer risk to another entity)
Traditional insurance or reinsurance: contract where insured pays insurer a premium, and insurer agrees to pay for pre-specified and post-verified losses
Indexed insurance: insurance contract where insurer makes payments based on certain external, measurable parameters or index
Capital market instruments: financial instruments that can be bought or sold on capital markets, and investors shoulder risk (e.g., catastrophe bonds and swaps, Pandemic Emergency Financing Facility)
Contingency pooled UN funds (e.g., Central Emergency Relief Fund and Country-Based Pooled Funds)
Discretionary post-emergency aid: includes in-kind and cash transfers
Discretionary post-emergency aid is the most common instrument for aid delivery in humanitarian emergencies and is provided primarily by HICs