In an environment where extreme weather events are becoming increasingly frequent, having a solid insurance support system makes a real difference. In Spain, we are fortunate to have a unique institution worldwide: the insurance compensation consortium (CCS). Its existence has once again been key in mitigating the consequences of devastating events such as the latest DANAs (isolated high-level depressions).
What is the insurance compensation consortium?
The consortium is a public entity under the ministry of economic affairs and digital transformation. Its role is to compensate insured parties in the event of extraordinary risks, which include natural phenomena such as:
- Floods
- Earthquakes and tidal waves
- Volcanic eruptions
- Extraordinary winds
- Falling celestial bodies or meteorites
It also covers acts of terrorism, riots, or events arising from the armed forces in peacetime. For these coverages to apply, it is essential that the affected party has a valid and properly paid insurance policy, regardless of the insurer with which it was taken out.
The economic impact of the October 2024 DANA in Valencia
The DANA that struck the province of Valencia on October 29, 2024 has become one of the most costly natural disasters in Spain’s history. According to data from the insurance compensation consortium, by March 2025 a total of 228,806 compensation claims had been received, of which 95.4% came from the province of Valencia.
So far, the CCS has made 169,635 payments, amounting to a total of €2,310.36 million.
The breakdown of compensation is as follows:
- Motor vehicles: 109,777 payments for a total amount of €949.40 million.
- Homes and homeowners’ associations: 48,423 payments totaling €711.23 million.
- Businesses, warehouses, and other risks: 8,442 payments amounting to €373.44 million.
- Industrial risks: 2,375 payments for a total of €250.19 million.
- Offices: 604 payments totaling €19.92 million.
- Civil works: 14 payments amounting to €6.17 million.
What does the insurance compensation consortium cover and how does it work?
The CCS acts as an insurer of last resort. It does not replace private insurers, but rather complements their coverage in the event of extraordinary occurrences.
The claims process is straightforward. The insured person or their broker can submit the claim directly through the consortium’s website or by phone, without having to wait for the insurance company to act first.
A jewel of the Spanish insurance system
The CCS is unique worldwide due to its scope and structure, although several countries have developed similar mechanisms to manage extraordinary events. Examples include France’s CAT Nat (when a natural disaster is declared) and GAREAT (terrorism and attacks), Germany’s SintFlut system for torrential rains and floods, and Norway’s NNPP (Norwegian Natural Perils Pool).
In most cases, natural phenomena are excluded from standard insurance policies and require specific coverages that are more expensive and less accessible.
In Spain, however, the mandatory surcharge paid on insurance policies when taking out motor, home, business, or industrial insurance guarantees protection in the event of a catastrophe. This solidarity-based system provides a collective safety net that has demonstrated strong effectiveness and financial solvency for decades.
O. Brokers recommendation
At O. Brokers, as a specialized brokerage, we always recommend keeping insured sums and coverages fully updated (including business interruption), as compensation in the event of a claim will be calculated based on these elements.
Having adequate and up-to-date coverage ensures greater financial protection and peace of mind in the face of unforeseen events. If you have questions or would like to review your insurance, do not hesitate to contact us. Our expert team is ready to advise you and help tailor your policies to your needs.
