People-affected trigger
A trigger based on the number of people reported affected by an event, used for example in SEADRIF’s 2025 policy for Lao PDR and PCRIC’s policy for Vanuatu.
Modelled-loss trigger
A trigger that feeds hazard data into a catastrophe model to estimate losses and pays according to the estimated, not the actual, loss.
Sovereign catastrophe risk pool
A facility owned or used by a group of governments to buy parametric cover together, diversifying risk and accessing reinsurance on better terms; examples include CCRIF, ARC, PCRIC and SEADRIF.
Basis risk
The mismatch between index payouts and actual losses: an adverse event with no payout (adverse basis risk) or a payout with no adverse event (positive basis risk), as framed by the IAIS.
Parametric insurance
Insurance in which a claim is defined by reference to a pre-determined index, such as rainfall or wind speed, and paid when the index crosses an agreed threshold, rather than by assessing each loss.
IFRS Practice Statement
Non-mandatory ISSB guidance; companies need not comply with it to state compliance with ISSB Standards. The ISSB proposed its nature-related disclosures in this form in October 2026.
Ecosystem services
The benefits people and businesses obtain from ecosystems; IPBES reports declines in 14 of 18 categories of nature’s contributions to people.
TNFD Adopter
An organisation that has publicly committed to start reporting in line with the TNFD recommendations; there were 802 by July 2026.
LEAP approach
The TNFD’s integrated assessment process for identifying and assessing nature-related issues: Locate the interface with nature, Evaluate dependencies and impacts, Assess risks and opportunities, Prepare to respond and report.