• The average reduction in the amount of the surcharges is 13%, which will make the policies of individuals and companies cheaper
  • The Insurance Compensation Consortium has sufficient reserves due to the moderation of claims

The General Directorate of Insurance and Pension Funds (DGSFP), under the Ministry of the Economy, Industry and Competitiveness, has approved a reduction in the amount of the surcharges applied by the Insurance Compensation Consortium (CCS) to cover extraordinary risks. Specifically, through a DGSFP Resolution, the amount of the surcharges for extraordinary risks is reduced by an average of 13% by adjusting the rates to cover damage to property (such as homes and communities and the risks industrial), the rate for damages to persons and the rate for the coverage of pecuniary losses. To calculate the reduction percentage in each of the cases, the accident rate in the period 1987-2016 has been studied, as well as its severity.

Due to the catastrophic nature of the risks covered, the Consortium must set up a stabilization reserve intended to cover negative and unfavorable deviations from claims. This reserve is cumulative in nature as it is generated from the surplus of each financial year (difference between income from surcharges and expenses from claims). The evolution of claims arising from extraordinary risks has remained, for a time now, at a moderate level, which has allowed a significant growth in the stabilization reserve to reach a level sufficient to face these risks. The aim of this measure is to reduce the growth rate of the stabilization reserve, allowing savings for policyholders.

In turn, the DGSFP Resolution updates the content of the extraordinary risk insurance coverage clauses that must be inserted in insurance policies.

The Insurance Compensation Consortium is the public body that is responsible, among other functions, for compensating damages caused to people and property by certain natural phenomena, acts of terrorism and other extraordinary events. As a condition, a policy must be subscribed in one or some of the branches for which current legislation establishes the obligation to include the guarantee of these risks in their corresponding coverage.

You can check the full Resolution at:


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