Global reinsurance broker Howden Re, in partnership with Howden Iberia, has been chosen to provide natural catastrophe modelling services for Spain’s national insurance pool for extraordinary risks, the Consorcio de Compensación de Seguros (CCS).
The state-run CCS provides protection against high-impact events that fall outside the scope of private insurance coverage, including perils like floods, earthquakes, volcanic eruptions, atypical cyclones, and other extraordinary natural and socio-political risks.
The CCS plays a key role in stabilising the country’s insurance market by absorbing large-scale losses and ensuring universal access to coverage.
Under the agreement, Howden Re is set to deliver advanced valuation and Probable Maximum Loss (PML) estimates for CCS’s natural catastrophe exposures across the perils of flood, earthquake, storm, volcanic eruption, and also multi-peril combined scenarios.
To provide CCS with high-resolution insights to strengthen their portfolio management and long-term resilience planning, the modelling will be performed across 50-, 100-, 200-, and 500-year return periods.
David Santos, Managing Director, Howden Re Iberia, said: “We are very proud of having the opportunity to work with Consorcio to model their NatCat exposure; this shows the strength and breadth of expertise of the Howden Group analytical services.
“This milestone reinforces our commitment to supporting institutions and insurers across Spain, bringing the full strength of Howden to market-leading modelling capabilities and a truly client-focused reinsurance offering.”
The global broking group has a strong presence in Spain, which was strengthened earlier this year with the launch of Howden Re Iberia, led by Santos. The company says that it continues to expand its footprint in the country.
Tim Edwards, Head of Analytics, Howden Re International, commented: “At Howden, we are proud to bring together our global analytical expertise with deep local market understanding. Our work with CCS reflects the calibre of Howden Re’s global analytics platform. By combining advanced modelling science with practical reinsurance insight, we are helping one of Europe’s most respected public insurance institutions better understand and manage its catastrophe risk.”
“Through our Climate Risk and Resilience practice, we are looking forward to help CCS’s modelling not only captures today’s catastrophe exposures but also anticipates the evolving impacts of climate change. By integrating forward-looking climate scenarios into our analytics, we help institutions like CCS strengthen their resilience frameworks and prepare for the extraordinary risks of tomorrow,” added Rodrigo Manrique, Climate Risk and Resilience, Howden.
