A bold reality check: pre-arranged disaster financing is surging worldwide, but the benefits aren’t reaching everyone equally. The Centre for Disaster Protection, an independent body focused on reshaping how the global system funds responses to climate shocks and disasters, released a new analysis showing rapid growth in pre-planned disaster funding, while the poorest and most fragile nations still receive only a tiny slice.
In The State of Pre-Arranged Financing for Disasters 2025, the centre reports that international pre-arranged financing climbed to a record USD 9.4 billion in 2024, the highest figure on record. This uptick signals a growing international shift toward securing funds before crises unfold, a strategy that becomes increasingly vital as climate impacts intensify and humanitarian and development budgets tighten.
The centre emphasizes that pre-arranged financing is valued for enabling faster, more reliable responses when disasters strike, reducing delays and uncertainty for governments and affected communities alike.
Yet the report cautions that the gains are not shared evenly. In 2024, low-income countries and those affected by fragility and conflict each received under 7 percent of total international pre-arranged financing, highlighting persistent barriers to access—namely affordability and eligibility hurdles.
Payouts from pre-arranged financing also rose markedly in 2024, more than doubling to USD 879 million and reversing a decline that had followed the COVID-19 peak in 2020. The majority of these payouts are attributed to the World Bank’s Catastrophe Deferred Drawdown Options, underscoring the growing role of contingent credit instruments in disaster financing.
Support for pre-arranged financing from development partners grew only modestly in 2022 and 2023, increasing by 6 percent to USD 889 million, and accounted for roughly 1.2 percent of total crisis financing. The centre stresses that funding to low-income countries remained particularly limited during this period, even as climate and disaster risks there intensified.
For clarity, pre-arranged financing means crisis funding that is approved in advance and automatically released when clearly defined trigger conditions are met. By securing funds ahead of disasters, governments can act quickly, minimize losses, and shield vulnerable populations when shocks occur.
Now in its third edition, The State of Pre-Arranged Financing for Disasters 2025 is authored by Michèle Plichta (Senior Researcher at the Centre for Disaster Protection), Zoë Scott (consultant), and Darshni Nagaria (Senior Researcher at the Centre). The Centre aggregates data previously scattered across sources—multilateral development banks, regional risk pools, and humanitarian partners—to present a more coherent picture.
According to the centre, the report offers the most detailed and up-to-date overview available of how much pre-arranged financing exists, which countries and regions benefit most, and where meaningful gaps persist. Growth has been driven largely by a surge in contingent loans—especially from the World Bank and the Inter-American Development Bank—while regional risk pools and catastrophe bonds continue to play important supportive roles.
Colin Bruce, a Centre for Disaster Protection Board Member and Co-Chair, stated: “PAF hit a record 9.4 billion USD in 2024, with growth across all country groups and types. But low-income nations and those in fragile or conflict-affected situations still hold the smallest share, and more must be done to help the most vulnerable communities prepare for and address crisis risks. As recent shocks have shown, ready-to-flow finance underpins proper planning and can speed recovery for families and businesses.” He added that while money isn’t the only ingredient, having funding ready is crucial—cited by events like Hurricane Melissa as a reminder of why proactive finance matters for planning and rapid recovery.
Kimberly Gire, another Centre Board Member and Co-Chair, observed: “This year’s findings provide the most complete global snapshot to date of how pre-arranged financing functions in practice. There’s clear progress and momentum toward proactive disaster risk management, but the report also exposes challenges. We urge the international community to scale up pre-arranged financing, improve accessibility and affordability for low-income and crisis-affected countries, and increase transparency among all actors.”
Michèle Plichta, the Centre’s Senior Researcher and lead author, commented: “By integrating data that was previously inaccessible, this report aims to elevate transparency and accountability in international financing. That’s a crucial step toward ensuring timely, equitable, and dignified protection when crises strike.”
