With growing fiscal constraints, governments and development partners face increasing pressure to maximise the impact of every dollar spent. To address this, the UK Government Actuary’s Department and the Centre for Disaster Protection developed an analytical framework to evaluate the cost-effectiveness of various instruments offered by international financial institutions. This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools. The analysis reveals that while some instruments are more cost-effective for frequent events, others perform better for less frequent, high-impact shocks.