New analysis released by the Center for Disaster Protection, an independent organization dedicated to strengthening the way the global system finances responses to climate and disaster shocks, shows that pre-arranged disaster risk financing is expanding rapidly around the world, while the poorest and most vulnerable countries still receive only a fraction of the total.
In releasing the State of Disaster Advance Financing in 2025, the Disaster Preparedness Center reported that international advance financing reached a record $9.4 billion in 2024, its highest level to date.
According to the Disaster Protection Center, this sharp increase demonstrates the international community’s growing focus on providing financing before crises occur, especially as climate impacts intensify and humanitarian and development budgets become more limited.
The center notes that pre-arranged financing is increasingly seen as a way to ensure a faster and more reliable response when disaster strikes, thereby reducing delays and uncertainty for governments and affected communities.
However, the Disaster Protection Center stresses that the benefits of this growth have not been evenly distributed. Its analysis shows that by 2024, low-income countries and countries affected by fragility and conflict will each receive less than 7% of total international pre-arranged financing.
The Disaster Protection Center stresses that this is a clear indication that access to financial protection remains limited for those most at risk, with affordability and eligibility remaining key barriers.
The Disaster Protection Center also found a significant increase in spending on prearranged financing in 2024, more than doubling to $879 million, reversing a downward trend that had continued since the peak of the COVID-19-related response in 2020. The center attributed much of the spending to the World Bank’s Catastrophe Deferred Drawdown Option, noting the growing importance of contingent credit facilities in the overall disaster financing landscape.
Meanwhile, the Disaster Protection Center reported that development partner support for prearranged financing increased only slightly in 2022 and 2023, rising 6% to $889 million. This represents approximately 1.2% of total crisis financing. The Center emphasizes that funding for low-income countries remains particularly limited during this period, even as climate and disaster risks affecting these countries continue to intensify.
As defined by the Disaster Relief Center, pre-arranged financing refers to crisis funds that are approved in advance and automatically released when clear trigger conditions are met. The center explains that by securing financing before disasters occur, governments are better able to act quickly when shocks occur, reducing losses and protecting vulnerable populations.
The State of Disaster Pre-arrangement Financing in 2025, now in its third edition, is co-authored by Michèle Plichta, senior fellow at the Center for Disaster Protection, Zoë Scott, consultant, and Darshni Nagaria, senior fellow at the Center. The Disaster Protection Center draws on information from multilateral development banks, regional risk pools and humanitarian partners to bring together previously fragmented and difficult-to-access data.
The center said the report provides the most detailed and up-to-date overview of the amount of pre-arranged financing, which countries and regions have benefited most, and where significant gaps remain. The Disaster Protection Center also noted that recent growth has been driven largely by a sharp increase in contingent lending, particularly from the World Bank and the Inter-American Development Bank, while regional risk pools and catastrophe bonds continue to play an important supporting role.
Disaster Protection Center Board Member and Co-Chair Colin Bruce commented: “In 2024, PAF reaches 94 An all-time high of $1 billion, with increases across all country groups and types. But low-income countries and fragile and conflict-affected regions still account for the smallest share of pre-arranged financing, and more should be done to support the most vulnerable communities to prepare and respond to crisis risks. As we have seen in countries that have been hit by recent shocks, having ready financing flows in the event of a disaster can support appropriate planning and help households and businesses recover more quickly.
“While financial resources are not the only requirement, Hurricane Melissa highlights the importance of having funds in place to support effective planning and rapid recovery for households and businesses.”
Kimberly Gire, Disaster Protection Center Board Member and Co-Chair stated: “This year’s survey results give us the most comprehensive and up-to-date understanding of how advance arrangement finance works around the world. There is no doubt that this is good news, and the momentum for a more proactive approach to disaster risks is growing. But the report also raises challenges. We call on the international community to continue to expand the scale of international advance arrangement finance, improve access and affordability to low-income countries and food security agencies, and strengthen transparency for all actors.”
Michèle Plichta, senior researcher at the Center for Disaster Protection and lead author of the report, added: “By integrating previously unavailable data, this report aims to increase transparency and accountability in the international financing system; an important step towards ensuring timely, equitable and dignified protection when crises occur.”
