Global reinsurance broker Howden Re has extended its ongoing collaboration with Mitiga Solutions to enhance Spain’s national approach to assessing volcanic risk.
The partnership applies Mitiga’s proprietary volcanic catastrophe models to the Canary Islands, providing a more sophisticated understanding of potential geological threats.
The initiative is being developed within Howden Re and Howden Iberia’s work with the Consorcio de Compensación de Seguros (CCS), Spain’s public insurance entity for extraordinary risks.
While flood and earthquake risks are frequently modelled, volcanic activity has traditionally been overlooked in standard catastrophe frameworks, Howden Re explains.
This collaboration aims to close this gap by developing advanced analytics and Probable Maximum Loss (PML) estimates across key perils, including flood, earthquake, storm and volcanic eruption, with a particular focus on strengthening how volcanic hazards are assessed.
As David Santos, Managing Director, Howden Iberia, explains, “catastrophe risk is growing in complexity, and advancing how we model less understood perils is essential. Partnering with Mitiga Solutions deepens our analytical capabilities, strengthening our ability to deliver more robust, forward-looking insights for our clients.”
The need for this product was highlighted by the 2021 eruption of the Cumbre Vieja volcano on La Palma. This event resulted in 1,600 buildings and 80 kilometres of roads destroyed by lava flows over several months.
Together with prolonged ash fall, the flows significantly disrupted almost every key sector across the island. Total economic damage exceeded $800 million, with agriculture among the hardest hit, including losses of more than $57 million for banana producers alone.
Mitiga, a Barcelona-based climate tech company. provides science-based, AI-driven intelligence to help organisations assess, report, and mitigate physical climate risks.
Its proprietary volcanic cat models aim to underpin the assessment of CCS exposure to lava flows and ash fall across Spain, forming a critical component of the overall analytical framework.
Alex Martí, CEO of Mitiga Solutions, said: “Volcanic risk remains one of the most difficult natural hazards to quantify, despite its potential for widespread disruption. Mitiga has developed proprietary modelling capabilities to better assess volcanic risk, and this collaboration with Howden Re creates an opportunity to bring that science into broader risk management frameworks.”
By combining Howden Re’s reinsurance expertise with Mitiga’s scientific modelling, the project aims to build a more resilient national insurance system capable of anticipating the financial impact of future eruptions.
