Legislative story to the extraordinary risk covers by Consorcio de Compensación de Seguros

We devote this eighteenth issue of Consorcio de Compensación de Seguros' (CCS') on-line magazine to review some current topics that we deem relevant for the insurance industry.

The Consorcio de Compensación de Seguros (CCS) was established in 1954 by merging other funds together, with the aim to take charge of insurance covers for which it retains responsibility up to the present day. Coverage of extraordinary risks is the most important of those insurance covers from the standpoint of the quantitative surcharges collected and the types of losses handled. Initially these risks were also known as catastrophic risks.

New technologies are entering our daily lives every year. The use of these technologies has crystallised as a form of change that has turned society on its head in just a short span of time and will continue to do so.

The different forms of computational science, whether descriptive, diagnostic, predictive, prescriptive, or preventive, are helpful in creating predictive models based on regression techniques.

On 28 September 2022 the European Commission passed two proposals to implement rules on liability to adapt to the digital age, the circular economy and the impact of global supply chains.

In general contract theory, consent, consideration and the subject-matter are the three essential elements. In an insurance contract, the consideration is the insured risk, whereas the subject-matter is the insured interest. In both cases, if they are not present, the Insurance Contracts Act ("LCS" for the Spanish) declares the contract null and void.

The presentation of the Operational Risk Handbook of AGERS (the Spanish Insurance and Risk Management Association) took place in September 2022, a manual written by the members that make up the Committee of Larger Companies Risk Experts, on which sits María Nuche, the Risk Management Director representing the Consorcio de Compensación de Seguros.

The growing evidence that there is something utterly wrong with the climate makes it more and more unnecessary to make efforts to convince sceptics that we are amidst a climate crisis or, as the Spanish legislation states, a climate emergency.