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- Report n°3: Financial protection of critical infrastructure
Report n°3: Financial protection of critical infrastructure
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Table of contents
- International analysis of coverage mechanisms : Private-Public Partnerships
- Commercial terrorism insurance in Spain (Consorcio)
- International analysis of coverage mechanisms : Private-Public Partnerships
Commercial terrorism insurance in Spain (Consorcio)
The Consorcio de Compensación de Seguros, a public body, was created in 1954 and is therefore the oldest insurance program against terrorism in Europe. It is a governmental program covering so-called "extraordinary" risks, for which insurance coverage is mandatory in Spain. It includes natural disasters, socio-political phenomena and terrorism. All business concerns operating in Spain are therefore insured against each of the above risks so that terrorism is not covered separately. This special cover is managed by private insurers who are all entirely reinsured by the Consorcio.
As in France and Germany (see below), the price of coverage by the Consorcio depends entirely on the amounts insured and not on the location of the risk (which is an illustration of the intrinsic difficulty of quantifying the probability of occurrence of such events and therefore of determining the price of the risk).
Following the events of March 11, 2004, the Spanish program reimbursed all losses, except life insurance and damage to trains (property of the Spanish State and self-insured).