Global reinsurance broker Howden Re, in partnership with Howden Iberia, has been selected to provide natural catastrophe modeling services to Spain’s national special risk insurance bank, the Consorcio de Compensación de Seguros (CCS).
State-operated CCS provides protection against high-impact events not covered by private insurance, including floods, earthquakes, volcanic eruptions, atypical cyclones and other unusual natural and socio-political risks.
CCS plays a key role in stabilizing the country’s insurance market by absorbing large-scale losses and ensuring universal coverage.
Under the agreement, Howden Re will provide advanced assessments and probable maximum loss (PML) estimates for CCS’s natural hazard risks, including floods, earthquakes, storms, volcanic eruptions and multiple hazard combination scenarios.
To provide CCS with high-resolution insights to enhance its portfolio management and long-term resilience planning, modeling will be conducted over 50-, 100-, 200- and 500-year return periods.
David Santos, Managing Director of Howden Re Iberia, said: “We are very honored to have had the opportunity to work with Consorcio to model their NatCat risk; this demonstrates the strength of Howden Group’s analytical services and breadth of expertise.
“This milestone reinforces our commitment to supporting institutions and insurers across Spain, bringing the full strength of Howden into market-leading modeling capabilities and truly client-centric reinsurance products.”
The global brokerage group has a strong presence in Spain, which was further strengthened by the launch of Santos-led Howden Re Iberia earlier this year. The company said it will continue to expand its operations in the country.
Tim Edwards, Head of Analytics at Howden Re International, commented: “At Howden, we are proud to combine our global analytics expertise with deep local market understanding. Our partnership with CCS reflects the capabilities of Howden Re’s global analytics platform. By combining advanced modeling science with real-world reinsurance insights, we are helping one of Europe’s most respected public insurers better understand and manage its catastrophe risks.”
“Through our Climate Risk and Resilience practice, we look forward to helping CCS’s modeling not only capture today’s disaster risks but also predict the evolving impacts of climate change. By incorporating forward-looking climate scenarios into our analyses, we help agencies like CCS strengthen their resilience frameworks and prepare for the extraordinary risks of tomorrow,” added Rodrigo Manrique of Howden’s Climate Risk and Resilience department.
