Spanish public body that indemnifies extraordinary risks, including natural catastrophes, through a mandatory surcharge.
The Consorcio de Compensacion de Seguros is a Spanish public body that ensures indemnification of so-called extraordinary risks, including floods, earthquakes, exceptional storms, as well as certain political and terrorism risks. Its funding rests on a mandatory surcharge levied on most property policies, pooling risk nationally. The Consorcio operates as an insurer of last resort and complement, intervening when an event falls into the extraordinary category. Its model, long-standing and financially robust, is often cited as a reference for an effective public catastrophe regime, with governance distinct from the French scheme. For insurance and reinsurance, it structures the Spanish catastrophe market by absorbing part of the peak risk, which changes the appetite and pricing of private players. The major floods that struck Spain tested its financial capacity and illustrated its systemic role.
After a major flood classified as an extraordinary risk, the Consorcio indemnifies Spanish policyholders directly, partly relieving private insurers of the loss peak.
Consorcio, CCS Espagne, Consorcio de Compensacion de Seguros